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
Read more from Laura MillerLatest in Steel Mills
Cliffs talks DOE funding, blast furnace relining schedule
The future of two projects supported in part by funding through the Department of Energy remains uncertain.
Cleveland-Cliffs open to asset sales
Meanwhile, its Canadian operations have been hurt by the broader tariffs proposed by the United States.
As Q1 loss balloons, Cliffs pledges to cut costs, streamline operations
Cleveland-Cliffs Inc. gushed red ink in the first quarter, and pledged to stem the bleeding by idling inefficient, “loss-making operations” and increasing focus on its core automotive business.
Cliffs plans to idle three mills, cut 950 jobs on ‘insufficient demand and pricing’
Cleveland-Cliffs plans to indefinitely idle its steel mill in Riverdale, Ill., as well as mills in Conshohocken, Pa., and Steelton, Pa. The Cleveland-based steelmaker said all three facilities would be idled on or around June 30. Approximately 950 jobs will be impacted, the company said.
CRU: Usiminas may reduce capex unless government strengthens protection
“The lack of effective measures to create fair competition, amid a surge in subsidized imports, is the main threat to the sustainability of Brazil’s steel industry and its value chain,” CEO Marcelo Chara said.