Final bids for US Steel (NYSE:X) are expected shortly after some site visits next week. The US Steel (X) strategic review may be entering its final phase this month, with site visits allowing potential buyers to conduct due diligence on US Steel’s assets, according to a Bloomberg report on Thursday.
Leading Bidders in the Final Round
Possible bidders in the final round include Cleveland-Cliffs, ArcelorMittal SA (NYSE:MT), and Stelco Holdings (OTCPK:STZHF), as reported by Bloomberg. The final selection of bids will determine the future ownership and direction of US Steel.
ArcelorMittal’s Potential Bid and Recent Challenges
The potential bid from ArcelorMittal (MT) for US Steel (X) may face scrutiny after a coal mine owned by ArcelorMittal in Kazakhstan experienced a tragic incident, resulting in the loss of at least 44 lives. In response to this incident, ArcelorMittal signed an agreement to transfer the ownership of its Kazakhstan operations to the government. The outcome of this event may impact the viability of ArcelorMittal’s bid for US Steel.
Industry Opposition to Cleveland-Cliffs’ Proposed Purchase
Recent news reveals that a group representing U.S. automakers opposes Cleveland-Cliff’s (NYSE:CLF) proposed purchase of US Steel (X). According to the Alliance for Automotive Innovation, the combination of these two entities may lead to increased costs for the automotive industry and potentially hinder the growth of electric vehicle sales. The group has expressed their concerns by sending a letter to Congress and U.S. regulators.
The Review Process and Previous Rejection
In August, US Steel (X) initiated a formal review process after rejecting a $7.3 billion cash and stock bid from Cliffs (CLF). As part of this process, US Steel (X) entered into confidentiality agreements with numerous third parties to explore potential alternatives. The final stage of this process will determine the future ownership and strategic direction of US Steel (X).