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Cleveland-Cliffs CEO says Nippon-US Steel deal has 'zero chance' of US approval
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Cleveland-Cliffs CEO says Nippon-US Steel deal has 'zero chance' of US approval
May 14, 2024 4:54 PM

WASHINGTON, May 14 (Reuters) - Nippon Steel's ( NISTF )

deal to buy U.S. Steel has "zero chance" of winning

government approval amid continued opposition from the United

Steel Workers union and "needs to be unraveled," the CEO of

rival suitor Cleveland-Cliffs ( CLF ) said on Tuesday.

Lourenco Goncalves told reporters at the American Iron and

Steel Institute's annual meeting that his bid had the full

support of the U.S. government, President Joe Biden, a Democrat

who wants U.S. Steel to remain American owned, and Republican

presidential candidate Donald Trump.

"It would be a silly movement to wait for the election in

the hopes that a different outcome would be allowed to them,

because I also have support from President Trump - personal

support from President Trump," Goncalves said.

Japan's Nippon Steel ( NISTF ) is pursuing a nearly $15 billion cash

deal to buy the iconic 123-year-old U.S. Steel, despite

resistance from Biden, the union and many members of Congress

while a U.S. national security review is conducted.

Cleveland-Cliffs ( CLF ) put U.S. Steel in play last August with an

unsolicited $7.3 billion bid, but Goncalves has said he would

consider a lower offer if the Nippon deal is scuttled.

Goncalves on Tuesday likened the transaction to a patient on

life support.

"We're waiting for an end. It's like a sick patient that

sits on a bed with a bunch of tubes and sensors around him. He

is still alive but for what?" Goncalves added.

U.S. Steel has argued that its labor agreement with the

United Steel Workers does not give the union a right to veto the

transaction. A U.S. Steel spokesperson could not immediately be

reached for comment on Goncalves' latest remarks.

Nippon Steel ( NISTF ) has said it is confident of completing the

acquisition of U.S. Steel, despite the opposition it has faced

from the union and politicians.

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