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(Bloomberg) -- Cleveland-Cliffs Inc. is partnering with Nucor Corp. to weigh a potential joint bid for United States Steel Corp., according to a person familiar with the matter. Cliffs’ top boss later confirmed his interest in the American steelmaker at a press event.
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The companies are considering an offer that would involve Cleveland-Cliffs acquiring most of US Steel and Nucor taking its so-called mini-mill assets, said the person, who asked to not be identified because the details aren’t public. A final decision hasn’t been made and the companies could still opt against pursuing a deal, the person said.
US Steel didn’t respond to requests for comment. Nucor declined to comment.
President Joe Biden this month blocked Nippon Steel Corp.’s $14.1 billion takeover of US Steel on national security grounds. The companies subsequently filed a pair of lawsuits in a last-ditch effort to preserve the merger. Cliffs was among several steelmakers that participated in the auction for US Steel in 2023, but it was outbid by Japan’s Nippon Steel.
Talk of a fresh US Steel takeover involving Cliffs was part of a wide-ranging press conference by Chief Executive Officer Lourenco Goncalves on Monday. The CEO said once Nippon Steel’s deal is abandoned “we’re going to work.” Cliffs’ plan would include adopting the US Steel name and moving its headquarters to Pittsburgh, he said.
“I want to buy. I have a plan,” Goncalves said at a gathering in Pennsylvania. “I have an all-American solution in place.”
The CEO said in a later interview with Bloomberg News that he’d fund any US Steel deal with debt, while declining to give further details.
A potential joint bid for US Steel involving Nucor was first reported by CNBC, which said the companies were considering an offer in the high $30 per share range.
Shares of US Steel rose more than 10% after the CNBC report, to $37.75 — still well below Nippon Steel’s $55-a-share offer. Cliffs shares climbed as much as 6% while Nucor shares were up as much as 4.6%.
In response, Nippon Steel said in a statement on Tuesday that Goncalves “cannot match the scope and scale of our plan.”
“We will continue to do whatever it takes to close our deal and secure their bright future,” the Japanese company said. “Nippon Steel remains the only partner for US Steel that can keep the company intact and the blast furnaces running, protect jobs, and deliver the technology and investment so that it can successfully compete on the global stage.”