Flat-rolled steel producer Cleveland-Cliffs (NYSE:CLF) has received the exclusive assignment of the right to bid for United States Steel Corporation (NYSE:X) under the United Steelworkers’ basic labor agreement with U.S. Steel.
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This development means that CLF is now the only realistic suitor able to acquire U.S. Steel. Additionally, the company has agreed to assume all of the agreements between U.S. Steel and the United Steelworkers after the closing of a transaction.
Under the collective bargaining agreement between the United Steelworkers and U.S. Steel, a sale of the company or of any assets represented by the union can only be consummated with the union’s support. And now, CLF has the right to bid on any potential transactions.
In another development, the U.S. Commerce Department is planning to impose preliminary anti-dumping duties on the imports of tin-plated steel from Canada, Germany, and China. Imports from China will attract the highest duties at 122.5%.
Overall, the Street has a $20.50 consensus price target on CLF alongside a Moderate Buy consensus rating. Shares of the company have declined nearly 12.2% this year so far.
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