Cleveland-Cliffs is renewing efforts to acquire U.S. Steel, aiming to secure the future of the iconic steelmaker. The move comes after the Biden administration blocked Nippon Steel’s $14 billion bid, citing national security concerns.

Speaking at a news conference on Monday, Lourenco Goncalves, CEO of Cleveland-Cliffs, emphasized his company’s commitment to an “All-American solution” for U.S. Steel. He stated the acquisition was a matter of “when, not if,” but shared no specific details about the bid.

Potential Plans and Market Reactions

Reports on Monday suggested Cleveland-Cliffs may partner with Nucor, another major U.S. steel producer, to acquire U.S. Steel. This plan could involve selling Big River Steel, a subsidiary of U.S. Steel, to Nucor. Despite speculation, Goncalves did not confirm any partnership during the press event.

The renewed bid has impacted U.S. Steel’s stock prices, which rose 10% following the news and closed with a 6% gain. However, the stock has declined 23% over the past year, reflecting concerns about its long-term prospects.

Legal and Strategic Challenges

Nippon Steel and U.S. Steel have filed lawsuits against the U.S. government, alleging political interference in blocking their merger. Additionally, they have sued Cleveland-Cliffs and the United Steelworkers union, accusing them of collusion to undermine the deal—claims both defendants deny.

The Biden administration postponed enforcement of its executive order against Nippon’s acquisition until June to allow time for judicial review. Goncalves noted that Cleveland-Cliffs’ bid depends on U.S. Steel’s management withdrawing from its agreement with Nippon.

Union and Industry Perspectives

The United Steelworkers union, representing about 11,000 U.S. Steel employees, has strongly opposed the Nippon merger. It raised concerns over illegal trade practices and endorsed Cleveland-Cliffs as the preferred acquirer due to its commitment to unionized operations.

Any Cleveland-Cliffs bid could face antitrust scrutiny. While the Biden administration has adopted a strict stance on mergers, some experts suggest future administrations might take a more lenient approach.

Future Outlook

U.S. Steel’s failure to modernize production methods has left it lagging behind competitors with energy-efficient technologies. Cleveland-Cliffs positions itself as the best option to preserve the company’s legacy and secure its long-term competitiveness.

As regulatory and legal challenges continue, Cleveland-Cliffs’ renewed bid could reshape the American steel industry.