Steel Mills
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/US_Steel.png)
U.S. Steel bids top $40/share as board meets on Wednesday: CNBC
Written by Michael Cowden
December 13, 2023
U.S. Steel has received multiple bids valuing the company at more than $40 per share, CNBC reported on Wednesday.
That’s a steep premium to $22.72, where shares of the Pittsburgh-based steelmaker closed on Friday, Aug. 11 – shortly before the sales process spilled into public view on Sunday, Aug. 13.
CNBC, citing anonymous sources, said the U.S. Steel board was meeting on Wednesday and that “the sale process is coming to a conclusion” – even if an announcement might not be imminent.
Cleveland-Cliffs went public with its bid for U.S. Steel in August. SMU understands that ArcelorMittal – perhaps along with Nippon Steel, its joint venture partner at AM/NS Calvert – is also among the potential bidders.
The three companies either could not be reached for comment or did not respond to requests for comment on Wednesday from SMU.
Timna Tanners – equity research analyst, metals and mining – at Wolfe Research said there were three likely scenarios in a note on Wednesday morning.
- U.S. Steel “stays solo”
- U.S. Steel is taken over by Cliffs, but the deal “faces a tough anti-trust review”
- U.S. Steel is taken over by ArcelorMittal in a deal “also likely subject to tough government review”
“While we do not believe in a robust bidding war and think valuation looks steep, the outcome is unknowable,” Tanners said.
Recall that Cliffs acquired ArcelorMittal USA and AK Steel in 2020. Those deals gave Cliffs a commanding position in automotive, one rivaled only by U.S. Steel. As SMU has previously reported, the Alliance for Automotive Innovation – a lobbying group for automakers – has sought government intervention to prevent further consolidation.
ArcelorMittal teamed up with Nippon in 2014 to buy the former ThyssenKrupp mill in Calvert, Ala. That mill is now its flagship in the US. ArcelorMittal also has HBI capacity near Corpus Christi, Texas, that it could use to supply the EAF it plans to start up Calvert next year and, potentially, Big River Steel in Arkansas as well.
Also worth noting: the United Steelworkers (USW) union could play a bigger role in any U.S. Steel sale than has been the case in past mega-steel deals.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/02/SMU_MC_headshot-150x150.png)
Michael Cowden
Read more from Michael CowdenLatest in Steel Mills
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/Nucor.png)
Nucor lowers 2024 output estimate for Brandenburg plate mill
Nucor has lowered the 2024 production estimate for its Brandenburg, Ky., plate mill due to soft market conditions.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/SSAB.png)
SSAB adjusts output in weak Q3, readies for Q4 rebound
SSAB said lower plate prices in the US were the primary reason for reduced results in the second quarter. With a dismal Q3 outlook, the Swedish steelmaker is adjusting production across its facilities. That includes moving up its annual US mill outage in anticipation of a better Q4. SSAB Americas Revenues in the Americas segment […]
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/Nucor.png)
Topalian puts focus on “unfair” trade, eyes USMCA partners
Nucor’s top executive expressed concerns over unfair trade practices, highlighting increased steel imports from Mexico and Canada.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/Cliffs_logo2.2.png)
Cliffs sees close of Stelco buy, bottom to steel tags, and Mexico out of USMCA
Cleveland-Cliffs expects its acquisition of Canada’s Stelco to close later this year, which will help the the Cleveland-based steelmaker as a bottom to steel tags nears.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/Nucor.png)
Nucor posts lower Q2 earnings, predicts tough Q3 too
Nucor recording lower second quarter earnings on falling steel prices. And the Charlotte, N.C.-based predicted that profits would be lower still in the third quarter, primarily because of weaker results from its steel mills divisions.