Steel Mills
Esmark Makes Cash Offer for U.S. Steel
Written by Ethan Bernard
August 14, 2023
Esmark Inc. announced on Monday a voluntary public cash and exchange offer for all issued and outstanding shares in U.S. Steel of $35 per share.
The diversified holding company and parent company of Esmark Steel Group said the initial offer period runs from Aug. 14 to Nov. 30, and may be extended. Completion of the offer is expected in Q4’23, Esmark said, subject to regulatory and antitrust clearances.
“With more than 40 years of steel industry experience, and as a former executive and statutory representative of U.S. Steel, I have significant intimacy with the steel business in the US and around the globe,” James P. Bouchard, chairman a CEO of Esmark Inc., said in a press release.
“This is an exciting time as the entire American steel industry is restructuring, and with Esmark’s long-standing history of excellence, we are anxious to continue to grow and we’re well positioned to come in and operate,” Bouchard added.
Recall that U.S. Steel announced on Sunday that it has started a formal process to review multiple unsolicited offers for the company. A Cleveland-Cliffs offer, valued at ~$10 billion, was rejected, but U.S. Steel president and CEO David Burritt has left the door open to further talks.
When asked about the offer, a spokesperson for U.S. Steel told SMU in an email on Monday that “the strategic review process announced yesterday is ongoing.”
Before founding Esmark, Bouchard was VP-Commercial for U.S. Steel in Europe, living in Kosice, Slovak Republic, according to the release. He was a member of the executive team U.S. Steel sent to Kosice after buying the Slovakian National Steel Co.
The Kosice operation became the most profitable steel asset owned by U.S. Steel at that time, the release said.
Esmark Steel Group, a wholly owned subsidiary of Esmark Inc., is a processor and distributor of value-added flat-rolled steel and the third-largest US producer of tin-plate steel, according to the release.
Ethan Bernard
Read more from Ethan BernardLatest in Steel Mills
U.S. Steel Q1 earnings slip, BRS expansions proceed
U.S. Steel posted slightly lower Q1’24 earnings as stronger earnings from its sheet mills were partially offset by a weaker performance from it tubular division. All told, the Pittsburgh-based steelmaker reported Q1’24 earnings of $171 million. That's down 14.1% from $199 million in Q1’23 on sales that fell 6.9% to $4.16 billion in the same comparison.
ArcelorMittal says Calvert CR outage over, floats buying Nippon’s stake in JV
ArcelorMittal posted a narrower Q1’24 profit compared to Q1’23 but remained optimistic about steel's long-term demand prospects.
SMU Community Chat: Hybar’s ambitious plans as newest player in rebar
Hybar has big plans for entering the American steel market. Although it is the newest player in the US rebar market, the startup is led by an experienced, nimble, and ambitious team, and backed by investors with deep pockets. Industry titan and Hybar CEO David Stickler joined SMU Managing Editor Michael Cowden on Wednesday’s Community Chat to update the SMU community on the company’s first mill, and its grand plans for the future.
Nucor drops weekly HR coil price by $10/ton
Nucor lowered its weekly base spot price for hot-rolled (HR) coil by $10 per short ton (st) this week.
Goncalves says Cliffs still has interest in USS buy
Cleveland-Cliffs Inc. would still be interested in acquiring some or all of U.S. Steel’s assets, if the proposed deal by Nippon Steel stumbles, according to an article in Bloomberg.