United States Steel Corp. ( X ) stock is trading higher Monday following a report that Cleveland-Cliffs Inc. ( CLF ) will partner with Nucor Corp. ( NUE ) to make a potential bid to acquire the company.

The Details: According to CNBC, Cleveland-Cliffs ( CLF ) plans to make a bid to acquire U.S. Steel in an all-cash deal, valuing the company at over $30 per share. As part of the planned deal, U.S. Steel’s headquarters would remain in Pittsburgh and Cleveland-Cliffs ( CLF ) would subsequently sell the Big River Steel subsidiary to Nucor ( NUE ).

Japanese-owned Nippon proposed a $14.9-billion takeover deal at the end of 2023, under which the company would purchase U.S. Steel for $55 per share. The deal was blocked by the Biden administration following a review by the Committee on Foreign Investment in the United States (CFIUS).

President Joe Biden has made it clear that he believes U.S. Steel should remain American-owned. He has also cited national security concerns and emphasized the importance of a strong domestic steel industry.

Nippon is now suing the Biden administration over the decision to block the acquisition. Additionally, Nippon and U.S. Steel have filed lawsuits against Cleveland-Cliffs ( CLF ), its CEO Lourenco Goncalves and United Steelworkers President David McCall, accusing them of conspiring to prevent the deal.

Cleveland-Cliffs ( CLF ) is reportedly considering making an offer in the high $30s per share. U.S. Steel shares jumped more than 8% on the news before pulling back slightly.

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X Price Action: At the time of writing, U.S. Steel shares were up 6.16% at $36.37, according to data from Benzinga Pro.

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