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.
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Posted 8/30/2023, 12:19:30 PM
reuters.com
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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.
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rival Cleveland-Cliffs Inc., and a higher, all-cash proposal from steel distributor Esmark Inc., which has since withdrawn its pursuit due to the United Steelworkers union's support for Cliffs.
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.