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InsideArbitrage Potential Deal Alert: United States Steel Corporation (X) Announces Strategic Alternatives Process

  • August 13, 2023


StockUnited States Steel CorporationSymbolX
Date Announced08/13/2023Source Press Release
TypeCompany Seeking Strategic Alternatives
Date of Confirmation: 12/18/2023Price at Confirmation: $50.12
Potential Profit: 61.26%Annualized Profit: 176.07%

United States Steel Corporation (X) announced that its Board of Directors has decided to initiate a formal review process, to evaluate strategic alternatives for the company.


August 13, 2023: United States Steel Corporation (X) confirmed that it has invited Cleveland-Cliffs to participate in its previously announced strategic review process. The company had received an unsolicited cash and stock proposal from Cleveland-Cliffs to acquire all of U. S. Steel’s outstanding shares but rejected a $7.25 billion cash and stock takeover offer from Cleveland-Cliffs.

According to the statement released on Sunday, Cleveland-Cliffs (CLF) stated it made an offer to U.S. Steel’s board on July 28 consisting of $17.50 in cash and 1.023 shares of Cliffs stock.

August 14, 2023: Esmark announced a voluntary public cash and exchange offer for all issued and outstanding shares in U.S. Steel Corporation (X) for $35 USD per share.

August 15, 2023: Esmark majority owner and Chief Executive James Bouchard said in an interview that his steelmaker has cash for its $7.8 billion bid for U.S. Steel Corp (X) sitting in his bank account.

August 16, 2023: ArcelorMittal SA (MT), the world’s second-largest steelmaker, is considering a potential offer for U.S. Steel Corp (X)

August 22, 2023: Cleveland-Cliffs (CLF) said U.S. Steel (X) must immediately provide the company and the United Steelworkers (USW) with information about all the proposals it has received so far as a part of its strategic review.

Under the Right to Bid provision of the labor agreement with the workers union, U.S. Steel must “promptly” notify USW and Cleveland-Cliffs if they receive a proposal from any third party, Cliffs’ chief executive Lourenco Goncalves wrote in a letter to U.S. Steel.

August 23, 2023: Esmark says it will not bid for US Steel (X), citing respect for USW union, which is supporting Cleveland-Cliffs’ (CLF) offer.

September 21, 2023: According to Bloomberg, Stelco Holdings Canada’s biggest steelmaker, is pursuing a bid for United States Steel (X).

October 31, 2023: According to Reuters, Automakers oppose Cleveland-Cliffs (CLF) push to buy U.S. Steel (X).

November 2, 2023: US Steel (X) auction to near end with site visits next week. Possible bidders in the final round include Cleveland-Cliffs (CLF) , ArcelorMittal SA (MT), and Stelco Holdings.

December 14, 2023: According to CNBC, The US Steel (X) board received multiple bids above $40 per share.

December 15, 2023: CNBC reported The US Steel (X) board is expected to meet again this weekend as it works to decide on takeover offers.

December 18, 2023: Nippon Steel Corporation (NSC) Japan’s largest steelmaker and one of the world’s leading steel manufacturers, and United States Steel Corporation (X), announced that they have entered into a definitive agreement pursuant to which NSC will acquire U. S. Steel in an all-cash transaction at $55.00 per share, representing an equity value of approximately $14.1 billion plus the assumption of debt, for a total enterprise value of $14.9 billion. The $55.00 per share purchase price represents a 40% premium to U. S. Steel’s closing stock price on December 15, 2023.

Disclaimer: Our intent with this section of the website is to present potential deals that appear to be in the pipeline. These potential deals are ones where i) the company has indicated that it is "seeking strategic alternatives", ii) there has been an unsolicited bid for a company as mentioned in a press release by the company or iii) news about the deal has been published by a leading news organization like The Wall Street Journal, The New York Times, Bloomberg, Financial Times, The Washington Post, Reuters and The Associated Press. As best as possible we will try to avoid baseless rumors. There is a high probability that many of these potential deals may not materialize and if they do, the terms of the deal may be different from what was initially reported. Please do your own due diligence before buying or selling any securities mentioned on this website. We do not warrant the completeness or accuracy of the content or data provided.