• Cleveland-Cliffs is preparing an all-cash bid for U.S. Steel, targeting an offer in the high $30s per share.
• CEO Lourenco Goncalves emphasized that the acquisition is a matter of "when," not "if."
• The bid follows President Biden's recent block of a Japanese company's acquisition of U.S. Steel due to national security concerns.
• Investors responded positively, with U.S. Steel shares rising substantially following the news.
• A legal battle looms as U.S. Steel and Nippon Steel have initiated lawsuits against the Biden administration over the merger blockage.

Cleveland-Cliffs is reportedly gearing up for a significant move to acquire U.S. Steel, looking to submit an all-cash bid aimed at securing a per-share price in the high $30s. This strategic pivot comes on the heels of President Biden's decision to block a $14.9 billion takeover bid by Japanese firm Nippon Steel, citing national security concerns as a critical rationale for the action. Amidst this unfolding drama, CEO Lourenco Goncalves declared, "We have an All-American solution to save the United States Steel Corporation," increasingly positioning Cleveland-Cliffs as a resilient American competitor ready to take over the once-dominant steel producer, as reported by the [New York Times](https://www.nytimes.com/2025/01/13/business/economy/us-steel-cleveland-cliffs-nippon.html). The sentiment echoed by Goncalves is clear—his company’s stance is that it presents a powerful alternative to Nippon Steel’s counter-offer, emphasizing a transition that serves the national interest. Cleveland-Cliffs has previously attempted to acquire U.S. Steel and is determined to revive its interest following a rejection in 2023 in favor of Nippon's higher offer. According to sources familiar with the situation, if Cleveland-Cliffs successfully acquires U.S. Steel, it plans to divest its subsidiary, Big River Steel, to Nucor, another major player in the steel industry. However, Goncalves has been reluctant to confirm any partnership specifics regarding Nucor during a press conference that accompanied this announcement ([Reuters](http://reuters.com/markets/deals/cleveland-cliffs-partners-with-nucor-potentially-bid-us-steel-cnbc-reports-2025-01-13/)). In the wake of the possible bid, U.S. Steel shares surged by about 10%, closing the day approximately 6% higher, a brief respite from a year-long decline that has seen stock values decrease by nearly 23%. Despite this optimism from investors, the position of U.S. Steel remains complex as they remain "committed to completing" their merger with Nippon Steel, which wants to revitalize U.S. Steel's operations amid significant capital investments and promises of preservation of jobs. The contentious atmosphere surrounding these proposed mergers has resulted in lawsuits, with U.S. Steel and Nippon Steel targeting the Biden administration for alleging interference in their merger. They argue that the president's actions represent a violation of due process. Similarly, U.S. Steel has countered claims that Cleveland-Cliffs is undermining the company’s prospects, labeling such moves as “illegal and coordinated actions.” In a continued war of words between the companies, Goncalves has notably criticized Nippon Steel, calling Japan a greater threat than China, a statement that has sparked backlash and concern for diplomatic relations, particularly amongst allies in the region. As the futures of the respective companies hang in the balance, Cleveland-Cliffs' drive to acquire U.S. Steel represents a critical shift in an industry riddled with competitive fervor, nurture of American jobs, and overarching implications tied to national security. Stakeholders will continue to monitor developments closely, as this evolving scenario might redefine the landscape of American steel production. For further details on this evolving corporate saga, visit the [New York Times](https://www.nytimes.com/2025/01/13/business/economy/us-steel-cleveland-cliffs-nippon.html) and [Reuters](http://reuters.com/markets/deals/cleveland-cliffs-partners-with-nucor-potentially-bid-us-steel-cnbc-reports-2025-01-13/).