Market Segment
May 5, 2026
POSCO cites 'different opinions' for stalled progress with Cleveland-Cliffs
Written by Kristen DiLandro
POSCO said its negotiations with Cleveland-Cliffs remain active, citing differences in opinions for lagging progress.
Following a financial presentation from the company, an analyst asked the South Korean steel and materials company whether it would discuss budgets and timelines for its overseas projects. Kim Gwang-mu, head of POSCO’s strategic investments division, said the company and the Cleveland-based steelmaker were having trouble reaching an agreement on valuation.
“In 2025, in order to enter the US market, we signed an MoU with Cleveland-Cliffs,” said Kim Gwang-mu.
“For cooperation and business synergy, we wanted to be able to cooperate. There’s been a lot of negotiation ongoing, especially about corporate valuation. But there are a lot of differences in opinions that is making it difficult for us to reach an agreement,” he added.
The two companies haven’t set a deadline for the deal’s completion. The executive offered no additional updates.
In October 2025, the two steelmakers penned a memorandum of understanding (MoU). Cliffs noted that the MoU marked the start of a “transformative” partnership.
A POSCO filing with the US Securities and Exchange Commission (SEC) in December stated, “Discussions are underway regarding equity ownership and investment size; however, no decisions have been finalized.”
Cliffs did not respond to a request for comment for this story. But the company addressed the status of its partnership with POSCO during its first-quarter earnings presentation in April. Chairman, President, and CEO Lourenco Goncalves said geopolitical tensions had slowed partnership conversations.
“Ongoing disruption in the Middle East has made Cliffs’ competitive position stronger and underscores why global steel producers want to partner with Cleveland-Cliffs,” Goncalves said. “We are still engaged … but we are no longer in a hurry. … Our situation is getting better, and that is changing our perception on how this deal should be taken care of.”
