As US Steel declared on Sunday that it is looking for strategic alternatives after it received multiple unsolicited bids, two competitors already proposed a buyout. Already two bidders revealed within two days that United States Steel, one of the major symbols of American Industrialization, is on the cusp of getting acquired.
The famous steel producer helped in building the New Orleans Superdome and also the United Nations building in New York City. Many experts are of the opinion that if any competitor of US Steel acquires the company, it can help in reshaping the global steel industry.
According to Associated Press News,
“After rejecting a $7.3 billion buyout proposal from rival Cleveland-Cliffs on Sunday, U.S. Steel said it was considering its next move. On Monday, industrial conglomerate Esmark offered $7.8 billion for the Pittsburgh steelmaker.”
On Monday, the share prices of US Steel increased more than 30%, which is going towards the odds that the bids for the famous 122-year-old steel company will go only upwards. However, US Steel spokespersons stated that the company is considering other offers, too, as the company did not talk about any timeline on when it is going to sell itself.
On June 28, competitor Cleveland-Cliffs made its first proposal. As per the CEO of Cleveland-Cliffs, the “tie-up” between the companies would enable the newly formed company to be one of the biggest steelmakers in the world. Furthermore, they are also hopeful that steel production will cost less, as they can focus on more innovation and stronger domestic supply.
If Cleveland-Cliffs acquires US Steel, they will control nearly 50% of the domestic flat steel market and a full 100% of the blast furnace production. This might create a domestic monopoly for Cleveland-Cliffs in regards to US iron ore and auto body sheet steel.
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