Shares in United States Steel Corp. jumped after Reuters reported that ArcelorMittal is considering an offer for the company, in what would mark a new escalation in a bidding battle.
(Bloomberg) — Shares in United States Steel Corp. jumped after Reuters reported that ArcelorMittal is considering an offer for the company, in what would mark a new escalation in a bidding battle.
US Steel jumped as much as 6.3%, extending this week’s gains to 42%. The company announced on Sunday it had started a strategic review after rejecting an offer from Cleveland-Cliffs Inc. for $7.25 billion. A day later, industrial group Esmark Inc. announced an all-cash offer for the company.
ArcelorMittal, the world’s second-largest steelmaker, is discussing a possible offer with its investment bankers, Reuters reported, citing people it didn’t identify. There is no certainty that they will press ahead with it, the report said. Representatives for ArcelorMittal and US Steel did not immediately respond to Reuters’ requests for comment.
The escalating battle will determine the fate of one of America’s industrial icons — US Steel was the country’s first $1 billion company — while reshaping the domestic steel landscape that is currently dominated by a handful of key producers.
For ArcelorMittal, a successful bid would mark a return to the US just three years after it sold almost all its American assets to Cliffs.
Read: Biden’s Steel Boom Helps Spark Bidding War for an American Icon
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