In a bold move, Cleveland-Cliffs has valued its attempted acquisition of US Steel at a staggering $7 billion. This represents a remarkable $35 per share for the long-established steelmaker. The proposed offer includes $17.5 in cash and a distribution of 1.023 Cleveland-Cliffs shares for each share of US Steel.
Sources said that US Steel's board of directors rejected Cleveland-Cliffs' offer as unreasonable, based on information received from Cleveland-Cliffs itself. This rejection follows US Steel's recent announcement that it is considering "strategic alternatives" to its current course.
The potential merger of these two leading organizations has the potential to reshape the outlook for the US steel industry. The merger would reduce the number of major steel producers in the country from four to three, marking a significant shift in market dynamics.
A possible merger of the two companies promises to strengthen Cleveland-Cliffs' market presence in key sectors such as appliances and automotive. Already, Cleveland-Cliffs is the largest steel supplier by volume in these critical industrial sectors.
With roots dating back to 1901 and a history intertwined with financial magnate John Pierpont Morgan and steel tycoon Andrew Carnegie, US Steel played a key role in the industrial advancement of the United States throughout the 20th century. Although no longer among the country's largest companies, US Steel remains a leading figure in the steelmaking industry.