U.S. Steel Acquisition to Reshape Global Steelmaking Industry

SEATTLE (Scrap Monster): The acquisition of Pittsburgh-based steelmaker United States Steel Corporation (U.S. Steel) could reshape the global steelmaking industry. Although the bids by Cleveland-Cliffs and Esmark are public now, the company stated that it has received other offers as well, which are under consideration.

The steelmaker had rejected $7.2 billion buyout proposal by Cleveland-Cliffs made in end-July this year. The tie-up between two of the leading U.S. steelmakers would have created one of the top ten steelmakers of the world. The Cleveland-Cliffs CEO Lourenco Goncalves has already expressed the company’s willingness to continue negotiations with U.S. Steel, despite blatant rejection of its initial offer.

Following this, industrial giant Esmark put forward an offer of $7.8 billion for the 122-year old steelmaker, thus becoming the second publicly known bidder. James Bouchard, the majority owner and Chief Executive of the company had claimed that he had enough cash for its bid sitting in his bank account.

A potential deal is unlikely to change the leadership position of China and Chinese companies in the realm of global steelmaking. Furthermore, it would not deliver any change to the fourth position of U.S. among the leading steel producing countries, behind China, India and Japan.