Hints and tips:
...Nippon offered $55 a share in cash for US Steel in December, months after the American company had rebuffed a lower offer from US-based Cleveland-Cliffs....
...There is also the fact that Cleveland Cliffs could pay far less than Nippon, even using its own shares....
...They would have preferred a transaction with Cleveland-Cliffs....
...Ohio-based Cleveland-Cliffs steel was awarded up to $500mn to replace one of its Middletown blast furnaces to be “hydrogen-ready”, among other measures....
...Shares of US Steel soared in pre-market trading a day after the steel producer rejected a $7.3bn bid from rival Cleveland-Cliffs....
...Cliffs shares have risen 50 per cent in the last five years. The integrated iron ore miner and steelmaker has become an industry consolidator....
...The deal has been in the works since December, when Nippon offered $55 a share in cash for the company, months after it had rebuffed a lower offer from US-based Cleveland-Cliffs....
...offers for the company....
...Chief executive Lourenco Goncalves told Bloomberg that Cleveland-Cliffs would consider a bid “in the $30s” and would have the United Steelworkers’ backing....
...The acquisition would create the only US steel company to be a top 10 producer in the world, Cleveland-Cliffs said....
...Cleveland-Cliffs was founded in 1847 to mine iron ore in the Great Lakes region....
...It comes after much of the country’s steel industry has consolidated, leaving Cleveland-Cliffs, Nucor, Steel Dynamics and US Steel as the four large players....
...The union, however, favoured an earlier, lower, bid from another US steelmaker, Cleveland-Cliffs, which it views as more union-friendly....
...Cleveland, an iron ore specialist that had bought its way into steel production, had initially made a cash and stock offer....
...The Pittsburgh-based company rejected a $7.3bn approach from rival Cleveland-Cliffs, and seemed to shrug when the privately held Esmark followed with a $10bn proposal....
...North American steel companies have undergone a wave of consolidation in recent years dominated by four players: Cleveland-Cliffs, US Steel, Nucor and Steel Dynamics....
...“Cattlemen mercilessly drove sheep off cliffs to their deaths,” an Iron Bar brief notes, and dozens of ranchers and rustlers were killed....
...The move by Esmark comes a day after US Steel rejected a $35-per-share cash-and-stock offer bid from Cleveland-Cliffs, the largest North American producer of flat-rolled steel....
...“Therefore, time is needed to iron out the details, set up new processes. We need to see how the market will react.”...
...Nippon Steel’s offer, a bet on a surge in US manufacturing driven by subsidies, was nearly double the offer from Cleveland-Cliffs in August....
...Nippon’s offer for US Steel — nearly double that of US bidder Cleveland-Cliffs in August — is one example of a strategic buyer taking advantage of that window while it is open....
...US Steel, formed in 1901, yesterday rejected a $7.3bn acquisition bid from rival Cleveland-Cliffs, hours after it said it had hired financial advisers to evaluate offers for the company....
...Red Sea attacks: Companies trading commodities such as iron ore and grain are threatening legal action to pressure shipowners to use the more dangerous but faster Suez Canal route....
...The shares in the US company, which rejected an offer from rival Cleveland-Cliffs in August, closed on Friday at $39.51 each....
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