U.S. Steel exploring sale after rejecting Cleveland-Cliffs offer
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U.S. Steel is exploring a potential sale after rejecting a recent offer from steelmaker Cleveland-Cliffs.
Representatives of the company that founded the city of Gary and remains a major employer in the area today said U.S. Steel has received multiple unsolicited proposals after Cleveland-Cliffs declined to engage in further talks until after U.S. Steel had agreed to economic terms proposed.
Cleveland-Cliffs had recently proposed an acquisition of all U.S. Steel’s outstanding shares, our partners at The Times of Northwest Indiana reported. Both companies on Sunday confirmed U.S. Steel had declined the offer.
U.S. Steel has now engaged financial and legal advisors, however, to evaluate a potential sale of some assets or of the entire company. Its president and CEO, David Burritt, wrote that the company has received multiple unsolicited proposals of varying degrees of acquisition and that the board would do its due diligence in reviewing the proposals.
“Our balance sheet is stronger than ever, and we are delivering resilient cash flow while prioritizing direct returns to stockholders,” Burritt wrote. “The interest demonstrated by the unsolicited proposals received to date is a validation of U. S. Steel’s strategy and successful track record of execution. While the Board conducts its review of previously received proposals and other proposals it expects to receive, our entire team remains focused on safely and responsibly executing across all of our operations and advancing our Best for All strategy, while continuing to deliver for all stakeholders.”
U.S. Steel employs about 4,000 workers in Indiana at multiple plants, including at the Gary Works, its largest plant. Cleveland-Cliffs, which acquired ArcelorMittal—including its Indiana Harbor and Burns Harbor mills—in 2020, has about 7,000 employees in northwest Indiana.
Click here to read the fully story from The Times of Northwest Indiana’s Joseph S. Pete.