A takeover of United States Steel triangle could create a new industry leader—and draw pushback from antitrust authorities and steel buyers.
The pursuit by Cleveland-Cliffs CLF of one of the nation’s biggest steelmakers, made public in recent days, could ratchet up market concentration in steel used to make auto fenders, food cans and batteries for electric vehicles. Cleveland-Cliffs and industrial conglomerate Esmark have both made offers for U.S. Steel that would value the company at more than $7 billion.
Suitors for U.S. Steel are attracted to the 122-year-old company’s relatively low stock price and its hefty capacity to produce steel that includes some of the largest and newest steel mills in the country, according to analysts. Elevated spending on transportation and energy infrastructure, giant manufacturing plants and electric vehicles are expected to stoke demand for more steel in the years ahead.
Read the full story on The Wall Street Journal here.