Already-indebted Cleveland-Cliffs would have to take on more debt to buy U.S. Steel

Cleveland-Cliffs, the leading flat-rolled steel producer in the US, is proposing to acquire chief rival U.S. Steel for $7.3 billion, which would add to its existing debt of $3.9 billion, although the company is confident in its ability to secure the necessary financing for the deal.

nwitimes.com

Relevant topic timeline:

8/24/2023

Behind nixed $7.8 billion US Steel deal, a familiar name in Chicago biz

US Steel Corp. is reviewing takeover proposals from multiple parties, including a rejected offer from domestic rival Cleveland-Cliffs Inc., and a higher, all-cash proposal from steel distributor Esmark Inc., which has since withdrawn its pursuit due to the United Steelworkers union's support for Cliffs.

8/30/2023

Union Negotiations Are Heating Up. Investors Shouldn’t Sweat It.

Labor negotiations between Cleveland-Cliffs and the United Steelworkers, as well as the ongoing talks between the United Auto Workers and the Detroit Three automakers, present buying opportunities for investors, despite concerns over potential strikes and rising labor costs.

8/30/2023

Cleveland-Cliffs, USW union reach tentative labor agreement

U.S. steel producer Cleveland-Cliffs Inc has reached a tentative agreement with the United Steelworkers union on a new 3-year labor agreement for its Northshore mining operations.

8/30/2023

122-year-old U.S. Steel is reviewing 'numerous' buyout offers

U.S. Steel is reviewing multiple buyout offers after rejecting a $7.3 billion proposal from Cleveland-Cliffs and receiving a $7.8 billion bid from Esmark, with soaring prices driving consolidation in the steel industry.