US automakers express concerns regarding US Steel acquisition

Wednesday, 03 April 2024 12:37:40 (GMT+3)   |   Istanbul

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.

Similar articles

Nippon Steel tries to allay concerns regarding US Steel acquisition

19 Apr | Steel News

US Steel shareholders approve acquisition by Nippon Steel despite opposition

16 Apr | Steel News

Biden: US Steel “must remain domestically owned and operated”

15 Mar | Steel News

USW receives Biden’s support on opposition to sale of US Steel

06 Feb | Steel News

Biden: Acquisition of US Steel by Nippon Steel needs to be investigated

28 Dec | Steel News

Tenaris acquires pipe processing plant in US

08 Sep | Steel News

Turkey’s Borusan Mannesmann in talks to acquire Europipe’s US unit

17 Mar | Steel News

InfraBuild plans to acquire GFG’s three US assets

18 Nov | Steel News

ArcelorMittal completes acquisition of Voestalpine’s HBI plant in Texas

01 Jul | Steel News

Alter Trading acquiring TRG

15 Aug | Steel News