ArcelorMittal weighs possible bid for US Steel

economictimes.indiatimes.com:

ArcelorMittal SA, the world's second-largest steelmaker, is considering a potential offer for U.S. Steel Corp, three people familiar with the matter said on Wednesday. The combination would reverse ArcelorMittal's retreat from the United States as a production base after it sold most of its operations to Cleveland-Cliffs Inc in 2020 for $1.4 billion to focus on growing markets such as India and Brazil.

ArcelorMittal is discussing a possible offer with its investment bankers, and there is no certainty that it will press ahead with it, the sources said. If it does launch a bid, it could mark the escalation of a bidding war that is already underway for U.S. Steel, following rival offers from Cleveland-Cliffs and Esmark Inc for more than $7 billion.

The sources requested anonymity because the deliberations are confidential. Representatives for ArcelorMittal and U.S. Steel did not respond to requests for comment.

U.S. Steel workers are members of the United Steel Workers (USW) union, which has come out in support of a deal with Cleveland-Cliffs even though U.S. Steel has rebuffed that offer as «unreasonable.» The union's endorsement is important because its collective bargaining agreement with U.S.

Steel makes it a party in the negotiations and affords it the right to counter with its demands.USW International President Tom Conway told Reuters ArcelorMittal would be «foolish» to move ahead with a bid and that the union would not endorse any buyers other than Cleveland-Cliffs. He said he was not happy with how ArcelorMittal has treated workers in the past, without elaborating. «I have no interest in talking to anybody else and I would like U.S.