Steel Showdown: Cliffs vs. Nippon Steel for U.S. Steel Supremacy

Cleveland-Cliffs is preparing a cash bid for U.S. Steel, aiming to sell Big River Steel to Nucor if successful. Nippon Steel's existing $14.9 billion bid was blocked by the Biden administration. Tensions rise as both parties argue over the future ownership and strategy for U.S. Steel.

Cleveland-Cliffs, in collaboration with Nucor, is planning a potential all-cash offer for U.S. Steel, with an estimated bid in the high $30s per share, according to a source familiar with the situation.

If successful, Cliffs intends to acquire U.S. Steel and subsequently sell its Big River Steel mill to Nucor. Cliffs CEO Lourenco Goncalves and rival Japan's Nippon Steel, which holds an agreement to purchase U.S. Steel, are embroiled in a public dispute over who is better suited to partner with the ailing company.

Goncalves expressed confidence in his position to make a compelling offer that aligns with U.S. Steel's objectives during a press conference in Butler, Pennsylvania. Meanwhile, U.S. Steel aims to complete its merger with Nippon Steel, despite recent challenges.

(With inputs from agencies.)