US-based mining company Cleveland-Cliffs Inc., whose initial offer at $7.3 billion to acquire United States Steel Corporation (US Steel) was rejected last year, is still interested in acquiring US Steel, SteelOrbis understands. Nevertheless, the US-based Alliance for Automotive Innovation has urged Lael Brainard, White House National Economic Council director, that given the current holdings of Cleveland-Cliffs, any combination between it and US Steel would need at least the same or more antitrust scrutiny. Beyond the antitrust implications, the alliance considers that an acquisition by Cleveland-Cliffs would expose the broader manufacturing sector to possible supply chain interruptions, especially the automotive industry, resulting in anti-competitive pricing for vehicles.
Meanwhile, US President Joe Biden has already expressed his opposition to Japan-based steelmaker Nippon Steel Corporation’s planned acquisition of US Steel, stating, “US Steel must remain domestically owned and operated,” as SteelOrbis previously reported. “If the administration has concerns about the Nippon Steel deal, it must seriously consider alternative outcomes. One option that should not be on the table is an arrangement that creates a market concentration of domestic steel production in a single company,” John Bozzella, CEO of Alliance for Automotive Innovation, said.
