Cleveland-Cliffs says U.S. Steel has ‘no path to close’

Cleveland-Cliffs (CLF) addressed the “inaccurate allegations” published by the U.S. Steel (X) Board on May 21, regarding its doomed attempt to sell its company to a foreign buyer without Union support. Lourenco Goncalves, Cliffs Chairman, President and CEO, said: “At Cleveland-Cliffs, we only deal with transparency. It is unfortunate that the U.S. Steel Board of Directors is just now realizing that it announced an un-closeable deal and is trying to blame Cliffs for its terrible decision-making. There has been nothing we have publicized or said publicly that could be described as ‘misinformation.’ From our first offer to acquire U.S. Steel to our final (now expired) offer on December 15, we stressed the necessity of keeping U.S. Steel American-owned and having the full support of the Union. Our position has never changed. The key piece of ‘misinformation’ has been the U.S. Steel Board of Directors insisting that the Union had no veto power. That ‘misinformation’ remains on U.S. Steel and Nippon Steel’s (NPSCY) deal website. Since we only deal with transparency, let’s state the facts: As we have explained to U.S. Steel since day 1, the United Steelworkers has declared they would only support Cleveland-Cliffs for a proposed acquisition of U.S. Steel. We see that as a de-facto veto power to disallow the acquisition of the entirety of U.S. Steel or USW-represented assets by anyone else other than Cleveland-Cliffs. On August 15, 2023, the late Tom Conway, former USW International President, said the union only endorses Cleveland-Cliffs to acquire U.S. Steel. This came after Conway said he received countless calls from potential bidders seeking the union’s approval – a necessary legal step for anyone seeking to buy U.S. Steel. David McCall, current USW International President, confirmed he only learned about Nippon Steel as an acquirer on the day that the deal was announced, December 18, 2023. The President of the United States, Joe Biden, has said that U.S. Steel should remain a ‘totally American company’ and ‘that is going to happen, I promise you…Guaranteed.’ Presidential candidate Donald Trump has said, regarding the transaction, ‘I would block it instantaneously. Absolutely.'”