by Greg Roumeliotis and Emma-Victoria Farr
(Reuters) – ArcelorMittal, the world’s second-largest steelmaker, is considering a bid for US Steel, already coveted by other companies, sources familiar with the matter said on Wednesday.
This hypothesis is being discussed between ArcelorMittal and its investment bankers and there is no indication yet that it will materialize, the sources added.
US Steel said on Sunday it was considering its strategic options after rejecting a takeover bid from rival steelmaker Cleveland-Cliffs valuing it at around $7.3 billion (6.7 billion euros), which it called “unreasonable “.
The unlisted industrial group Esmark then offered Monday to buy US Steel for 7.8 billion dollars.
Sources contacted by Reuters wished to remain anonymous and no representatives of ArcelorMittal and US Steel immediately responded to requests for comment.
On the New York Stock Exchange on Wednesday afternoon, US Steel shares rose 5.2% to 31.81 dollars. The offers from Cleveland-Cliffs and Esmark valued US Steel at $35 a share when submitted. Esmark’s offer is all cash, Cleveland-Cliffs’ offer is half cash, half stock.
US Steel has emerged as a target after several quarters of declining revenues and profits due to rising raw material and energy costs.
ArcelorMittal is also facing a slowdown in global demand. The group announced last month a profit of 2.6 billion dollars for the second quarter, half less than in the second quarter of 2022.
(French version Jean-Stéphane Brosse)
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