2023-08-24 00:20:00
steel worker
A major takeover is likely to take place in the US steel industry soon.
(Photo: Reuters)
In the struggle for a takeover of the steel group US Steel, the way is clear for the group Cleveland-Cliffs after the withdrawal of the US industrial holding Esmark. Esmark announced on Wednesday evening (CEST) that it did not want to submit an offer. Chairman and CEO Jim Bouchard cited the support of the Cleveland-Cliffs union as the reason.
The US group Cleveland-Cliffs had secured the support of United Steelworkers (USW) for the takeover last week. Cleveland-Cliffs had already submitted a bid for US Steel worth 7.25 billion US dollars (almost 6.7 billion euros). Esmark wanted to put 7.8 billion dollars (almost 7.2 billion euros) on the table. Esmark said it was respecting the position of the etc. union. With Esmark out, Arcelor-Mittal is likely to be Cleveland-Cliffs’ only known potential challenger.
On the stock exchange, the news caused US Steel shares to fall by 1.3 percent. Cleveland Cliffs rose 1.0 percent.
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