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ArcelorMittal, the world’s second-largest steelmaker, is considering a potential offer for US Steel, three people familiar with the matter said on Wednesday.
The combination would reverse ArcelorMittal’s retreat from the US as a production base after it sold most of its operations to Cleveland-Cliffs in 2020 for $1.4 billion to focus on growing markets such as India and Brazil. ArcelorMittal is discussing a possible offer with its investment bankers, and there is no certainty that it will press ahead with it, the sources said. If it does launch a bid, it could mark the escalation of a bidding war that is already underway for US Steel, following rival offers from Cleveland-Cliffs and Esmark Inc for more than $7 billion.
The sources requested anonymity because the deliberations are confidential. Representatives for ArcelorMittal and US Steel did not respond to requests for comment. US Steel workers are members of the United Steel Workers (USW) union, which has come out in support of a deal with Cleveland-Cliffs even though US Steel has rebuffed that offer as “unreasonable”.
ArcelorMittal’s deliberations come after US Steel said on Sunday it had launched a process to explore interest from potential acquirers. US Steel became an acquisition target after quarters of falling revenue and profits.
The combination would reverse ArcelorMittal’s retreat from the US as a production base after it sold most of its operations to Cleveland-Cliffs in 2020 for $1.4 billion to focus on growing markets such as India and Brazil. ArcelorMittal is discussing a possible offer with its investment bankers, and there is no certainty that it will press ahead with it, the sources said. If it does launch a bid, it could mark the escalation of a bidding war that is already underway for US Steel, following rival offers from Cleveland-Cliffs and Esmark Inc for more than $7 billion.
The sources requested anonymity because the deliberations are confidential. Representatives for ArcelorMittal and US Steel did not respond to requests for comment. US Steel workers are members of the United Steel Workers (USW) union, which has come out in support of a deal with Cleveland-Cliffs even though US Steel has rebuffed that offer as “unreasonable”.
ArcelorMittal’s deliberations come after US Steel said on Sunday it had launched a process to explore interest from potential acquirers. US Steel became an acquisition target after quarters of falling revenue and profits.
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