Nucor could be part of Cliffs’ next US Steel bid, reports say

Cleveland-Cliffs Inc. might be partnering with electric arc furnace (EAF) steel producer Nucor Corp. to make a joint bid for United States Steel Corp., according to a report from Bloomberg that cites a source familiar with the matter.

The Cleveland-based steel and iron producer made a bid for U.S. Steel in 2023 in a potential move that would see it owning all of the blast furnace/basic oxygen furnace (BOF) steelmaking capacity in the U.S.

The suggestion that Nucor might be involved in a second bid attempt was not part of any reported news in late 2023 or throughout 2024, as Japanese steelmaker Nippon Steel Corp. waited to see if its accepted bid could clear regulatory hurdles in the U.S.

According to Bloomberg, Cliffs and Nucor, which is based in Charlotte, North Carolina, are formulating an offer that would involve Cleveland-Cliffs acquiring most of U.S. Steel and Nucor taking its minimill EAF assets, which are based in Arkansas and operate under the Big River Steel brand.

The source tells Bloomberg a final decision hasn’t been made and the companies still could opt against pursuing a deal.

Cleveland-Cliffs CEO Lourenco Goncalves has been transparent about his goal of acquiring all or part of U.S. Steel, both before and after President Joe Biden blocked Nippon Steel’s proposed $14.1 billion acquisition early this month.

According to Bloomberg, Goncalves again addressed the topic at a news conference Jan. 13, with Goncalves stating, “I want to buy. I have a plan,” and “I have an all-American solution in place.”

Bloomberg credits CNBC for first reporting the joint Cliffs-Nucor bid, with CNBC stating the two companies are considering an offer to U.S. Steel shareholders of more than $35 per share. Even at $39 per share, the offer would come in lower than the $55 per share offer made by Nippon Steel.

Bloomberg also reports a response from Nippon Steel in which a spokesperson says Cliffs “cannot match the scope and scale of our plan.”

The response received from Nippon says, “Nippon Steel remains the only partner for U.S. Steel that can keep the company intact and the blast furnaces running, protect jobs and deliver the technology and investment so that it can successfully compete on the global stage.”