Cleveland-Cliffs CEO seeks 'American solution' for U.S. Steel

Biden recently blocked Nippon’s $14.9-billion proposed buy of U.S. Steel. Nippon, citing national security concerns. U.S. Steel initially had until early February to unwind the deal. An extension from the Committee on Foreign Investment in the US (CFIUS) extended that deadline until June 18. President-elect Trump has also opposed the merger.

A bid by another suitor can’t be made until the deal with Nippon is formally abandoned.

Monday morning, CNBC reported that Cleveland-Cliffs could be teaming up with Nucor to make a play for U.S. Steel. Cliffs would buy all of Pittsburgh-based U.S. Steel in a cash deal, and then Nucor would come in to purchase Big River Steel in Arkansas.

Goncalves did not confirm or deny whether he is working with Nucor, and said he did not want to negotiate in the press.

However, he did say he wanted a deal.

“I want to buy,” Goncalves said. “I have a plan. I have an all-American solution.”

He said a new entity would operate under the U.S. Steel name, and would retain its Pittsburgh headquarters.

Goncalves pledges to move to Pittsburgh

“It’s not very different than when NationsBank acquired Bank of America,” he said of the 1998 tie-up. “NationsBank decided to keep the name Bank of America because they believed that Bank of America was more powerful than NationsBank.”

He also said executives and general counsel would move to the Steel City.

“I will relocate to Pittsburgh, and U.S. Steel will finally have a CEO residing in Pittsburgh, because the existing one resides in Peoria, Ill.,” he said.

“By the way, whoever is in the building, that name on top of the building, whatever name they have, prepare to take it down, because I’m going to put U.S. Steel Corp. at the top.”

That skyscraper, U.S. Steel Tower, is the city’s tallest building. UPMC, the Pittsburgh region’s hospital and insurance giant, holds naming rights.

In a statement, Shapiro said he has not endorsed any potential deal.

Goncalves “has made clear that he intends to make a bid for U.S. Steel, and in conversations with the governor, he has made meaningful commitments to Pennsylvania –– including moving his headquarters to Pittsburgh,” a spokesman for Shapiro said.

“Before the governor would even consider endorsing any potential deal, Cleveland-Cliffs needs to make a formal bid to buy U.S. Steel and present specific details on what it will do to protect Pennsylvania jobs for the long term,” the spokesman said.

“As Gov. Shapiro has stated before, he expects any potential buyer for U.S. Steel to demonstrate strong commitments to capital investment at the Mon Valley Works, keeping the headquarters in Pittsburgh, and protecting and growing jobs throughout Western Pennsylvania.”

And bashes Japan

Nippon has filed lawsuits against the US government, and another suit against Goncalves and United Steelworkers union International President Dave McCall.

Goncalves said he welcomed the suits.

“When the CEO of Nippon Steel, Eiji Hashimoto, calls me a thug and a mafia boss, I’m sure he will be able to prove that in court, because I already initiated my investigation on how to import dogs from Japan. Because if he can’t prove that, I’m going to go after him personally, and I’ll take his last penny, his house, his car, and his dog,” he said.

Goncalves also accused Japan of taking advantage of its long-time position as an ally with the United States.

“I know that everybody talks about China. I talk badly about China, as well. China is bad, China is evil, China is horrible, but Japan is worse. Japan is a lot worse.”

At one point, Goncalves paused and grabbed one of the American flags standing behind him and shouted, “Japan, beware! You don’t understand who you are. You did not learn anything since 1945.”

“Stop sucking our blood. We are Americans. We love the United States of America. We don’t have any ill intent or ill feelings about you, but we like us first. It’s America first, and we are not ashamed of that,” he added.

Later, he walked back some of his comments, saying they were reserved for Nippon Steel, not for the people of Japan.

“I would like to say that all my comments, particularly the seppuku comments, were specifically about Nippon Steel and their incredible arrogance in the way they approach this deal. We have, and myself have, the ultimate respect for the Japanese people. They’re good people; they’re great people. The Japanese people are good at heart, but the Japanese corporations, they have a different relationship with their government.”