Cleveland-Cliffs (CLF, Financial) (CLV, Financial) CEO Lourenco Goncalves is pulling no punches in his pursuit of United States Steel (X). After securing financing from heavyweight banks like JPMorgan and UBS, Goncalves is ready to make an all-cash offer in the high $30s per share. His game plan? Partner with Nucor (NUE) to carve up US Steel's operations—Cliffs taking the legacy blast furnaces, while Nucor snags the state-of-the-art Big River Steel mill. It's a power play aimed at dominating the American steel industry while capitalizing on the collapse of Nippon Steel's $14 billion bid, which was blocked by President Biden over national security concerns.
But the drama doesn't stop there. Goncalves isn't just throwing money around—he's weaponizing patriotism. Labeling Nippon Steel and Japan as threats to U.S. steel's survival, he's positioning Cliffs as the defender of domestic production. Nippon, meanwhile, has clapped back, touting its higher $55-per-share offer and a plan to overhaul US Steel's aging mills. US Steel's board is sticking to the Nippon deal for now, but shareholder pressure is building, with the stock sitting at nearly $37 in today's morning. The deal's linchpin? Valuing Big River Steel, which could make or break Cliffs' partnership with Nucor.
With Washington's political heavyweights weighing in—both President Biden and President-elect Trump have opposed foreign ownership of US Steel—this fight is as much about strategy as it is about sentiment. Goncalves is leaning hard into the “America First” narrative, but questions remain: Can Cliffs outmaneuver Nippon's deeper pockets and global reach? Investors are glued to this steel saga, as the outcome could reshape not just the industry but America's economic playbook for years to come.
