Steel Mills

U.S. Steel Confirms NDAs, Begins Due Diligence for Sale

Written by Laura Miller

August 29, 2023

U.S. Steel’s ‘strategic alternatives’ process is continuing. This week the Pittsburgh-based steelmaker confirmed to shareholders that it has entered into nondisclosure agreements (NDAs) and has begun due diligence on a potential sale.

In a letter to shareholders dated Aug. 29, U.S. Steel said it has entered “into customary confidentiality agreements with numerous third parties.”

Additionally, it has begun “to share due diligence information under” the agreements.

“We are highly focused on running a fair and competitive process to maximize shareholder value and mitigate transaction execution risk,” said the letter signed by U.S. Steel’s president and CEO David Burritt and board chair David Sutherland.

The letter said they “don’t know how long the process will take” but they are “moving quickly to complete it.”

And “while some companies undertake this kind of review privately, we chose to make it public to ensure that the process is as robust as possible and the board hears all options, from any party that may have an interest in our company,” it said.

The full letter can be read on U.S. Steel’s website.

The only public offer still on the table is one from Cleveland-Cliffs, which offered to buy the entirety of U.S. Steel for $35 per share. Cliffs’ bid has the full backing of the United Steelworkers (USW) union.

Laura Miller

Laura Miller is a reporter and editor for Steel Market Update. She has held a variety of positions within the steel industry since 2007, including reporting and editing for Steel Business Briefing/Platts, the Association for Iron and Steel Technology, and Kallanish Commodities, as well as marketing for what was then known as ThyssenKrupp Steel USA (now AM/NS Calvert). After a five-year hiatus working across other industries, she returned to steel in 2021 and has covered the flat rolled, tubular, and trade areas of the industry. She is a member of the Association of Women in the Metal Industries and a past-president of the AWMI Pittsburgh Chapter. She holds a BA in Latin American Studies from Edinboro University of Pennsylvania. She can be reached at laura@steelmarketupdate.com or 724-759-7869.

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