USS nears National Steel deal via agreement with USWA
US Steel, one of the bidders for the acquisition of bankrupt National Steel, has reached an agreement with the workers union USWA.
US Steel is preparing to resubmit an offer for National Steel today, giving emphasis on its confidence of its financial ability to be awarded the deal. The company initially offered $750 million excluding National Steel Pellet Corp. but later a rival bid came in from AK Steel at $925 million including this taconite mine, which was previously appointed the lead bidder by the bankruptcy court. However, AK Steel has not so far been able to reach an agreement with the union. The given deadline with this regard was Wednesday.
Industry analysts comment
US Steel chances higher than AK Steel to win the deal out, as the agreement with the union is an important criterion for the bankruptcy court during the approval process.
The five year contract with the union covering both
US Steel and National Steel workers is conditional upon
US Steel's winning the acquisition of National Steel and subject to ratification by union members, as explained by he union president.