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Techint emerges as potential major bidder for U.S. Steel assets

EditorRachael Rajan
Published 11/03/2023, 02:01 PM
© Reuters.
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US Steel (NYSE:X) has been attracting a diverse range of bidders for its potential sale, including Cleveland-Cliffs (NYSE:NYSE:CLF), ArcelorMittal (NYSE:NYSE:MT), and a new entrant from Argentina, Techint's Ternium. Techint's interest in acquiring up to 90% of US Steel's assets has positioned it as a significant contender in the ongoing bidding process. This development has led to a fractional increase in US Steel's stock value, with shares experiencing a 0.6% uptick.

Other companies, such as Nucor (NYSE:NYSE:NUE), have expressed interest in specific portions of US Steel's assets. Nucor is considering partnering with Stelco or Steel Dynamics (NASDAQ:STLD) to secure a larger share of the assets. Amidst the bidding process, US Steel has given advance notice for laying off 105 employees, primarily from its IT operations. This move is part of a restructuring effort anticipating redundancies post-sale.

Cleveland-Cliffs had previously made a bid for US Steel, offering $7.3 billion in August. However, this bid was rejected by US Steel, which subsequently started a formal review process and entered confidentiality agreements with multiple third parties. As part of this process, Cleveland-Cliffs signed a non-disclosure and standstill agreement that will expire on December 1.

Final bids for US Steel's assets are due following site visits scheduled for next week, according to Bloomberg. The sales completion is expected by the end of November.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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