(AOF) – Steel producer, US Steel has rejected, by its board of directors, an unsolicited offer to buy Cleveland-Cliffs in cash and stock. The offer valued US Steel at approximately $7.3 billion and sought to acquire all outstanding shares of US Steel. According to the letter from US Steel General Manager David B. Burritt, “US Steel was unable to properly evaluate the proposal because Cleveland-Cliffs refused to sign a confidentiality agreement unless US Steel does not agree to the economic terms of the proposal in advance”.
“As you know, our board of directors – or any other board of directors – could not, in accordance with its fiduciary duties, accept a proposal of which 50% is represented by your shares without carrying out a thorough due diligence process and quite usual, in order to assess the risks and the potential advantages and disadvantages inherent in the transaction, including the “equity” component., can we read in this letter.
Cleveland-Cliffs is a Cleveland, Ohio-based company specializing in iron ore mining, beneficiation and pelletization, as well as steel fabrication, including stamping and tooling.
AOF – LEARN MORE
An ecological transition that drives metal prices
The ecological transition is driving demand and driving up prices. Thus lithium prices jumped 100% last year, supported by sales of electric cars. The needs for metals such as aluminum, copper, graphite, or nickel should soar by 2050. The war in Ukraine has reinforced the rise in prices because Russia is a major producer of mineral raw materials , in particular aluminium, palladium, nickel and titanium. The International Energy Agency (IEA) recently warned of the risk of a shortage of several metals necessary for the energy transition. Europe has mobilized on strategic metals with the aim of strengthening its sovereignty.