Cleveland-Cliffs (CLF.US) joins forces with Nucor Corporation (NUE.US) in the bid to acquire United States Steel Corporation (X.US)

According to informed sources, Cleveland-Cliffs (CLF.US) is collaborating with its competitor Nucor Corporation (NUE.US) to prepare a potential acquisition offer for United States Steel Corporation (X.US). Earlier, Japan's Nippon Steel's acquisition offer for United States Steel Corporation was blocked by the White House on national security grounds earlier this month. Reportedly, Cleveland-Cliffs plans an all-cash acquisition of United States Steel Corporation, then sell its subsidiary Big River Steel to Nucor Corporation, with United States Steel Corporation's headquarters remaining in Pittsburgh. The offer is expected to reach a high of $30 per share, while Nippon Steel planned to acquire United States Steel Corporation at $55 per share, making the deal worth over $14 billion. It is understood that the White House extended Nippon Steel's deadline to permanently abandon the acquisition of United States Steel Corporation to June last weekend. Previously, US President Joe Biden blocked the deal on national security grounds. United States Steel Corporation and Nippon Steel are suing Biden's decision in federal court. Furthermore, United States Steel Corporation and Nippon Steel also filed another lawsuit against Cleveland-Cliffs, its CEO Lorenzo Gonzalves, and United States Steel Corporation Workers Union President David McCorr, accusing them of conspiring to block the deal. The stock prices of Cleveland-Cliffs and Nucor Corporation both rose by about 3% on Monday. Gonzalves denied the lawsuit, calling it a "shameful act of trying to shift the blame for the disaster of United States Steel Corporation and Nippon Steel onto others." It is worth mentioning that Biden's decision to block the sale came after a review by the Committee on Foreign Investment in the United States, but the President has consistently stated for months that he believes United States Steel Corporation should remain an American company. Biden cited national security concerns in his decision on January 3, stating that a strong domestic steel industry is crucial to US supply chains. United States Steel Corporation and Nippon Steel believe that, in the face of threats from China, this deal strengthens the steel industry and is in the best interests of workers and national security. United States Steel Corporation CEO David Burritt called on President-elect Donald Trump to reverse Biden's decision to block the sale after taking office later this month. Trump also opposed Nippon Steel's acquisition of United States Steel Corporation. As of the close of trading on Monday, United States Steel Corporation's stock rose over 8%, to $37.15 per share.