Cleveland-Cliffs is reiterating its interest in buying unionized factories that US Steel is threatening to close if its takeover of Japan’s Nippon Steel is blocked by President Joe Biden.
While the White House has said it is waiting to hear from the Committee on Foreign Investment in the United States, or CFIUS, about potential national security concerns presented by the deal before making a decision, Cleveland-Cliff applauded reports that Mr. Biden is ready to derail the merger.
“Our industry is best served by American companies committed to the long-term prosperity of domestic manufacturing, supported by good-paying union jobs, under American ownership,” said Cleveland-Cliff CEO Lourenco Goncalves said in a statement on Thursday. “Cleveland-Cliffs is ready to immediately acquire and invest in any union-represented assets that US Steel lays down, protecting union jobs and investing in future livelihoods and communities where the facilities operate.”
The CEO’s statement helped revive US Steel’s stock, which rose more than 5% on Friday to trade at $31.50 a share.
US Steel shares had fallen after Vice President Kamala Harris added her voice to those supporting the iconic company being domestically owned and operated at a Labor Day event in Pittsburgh on Monday. Shares fell further after reports that Mr. Biden is poised to formally block the proposed $14 billion-plus acquisition, possibly in the coming days.
US Steel moved to save the deal, saying it would have to close mills represented by the United Steelworkers (USW) union if the acquisition of Nippon Steel does not go through. USW opposes the merger, but supported a rejected offer by Cleveland-Cliffs for US Steel.
Based in Cleveland, Ohio, Cleveland-Cliffs is already acquiring Canadian steelmaker Stelco Holdings for $2.8 billion.