ArcelorMittal, the world's second-largest steelmaker, is reportedly contemplating making a bid for US Steel, according to sources familiar with the matter. This potential move would mark a reversal of ArcelorMittal's withdrawal from the US steel production sector, as it divested most of its operations to Cleveland-Cliffs in 2020 for $1.4 billion, focusing on markets like India and Brazil.
Although the company is in discussions with its investment bankers about a possible offer, there's no certainty that the company will proceed. Such a bid could intensify an ongoing bidding competition for US Steel, which has already seen offers from Cleveland-Cliffs and Esmark Inc surpassing $7 billion. Neither ArcelorMittal nor US Steel representatives have provided comments on the matter.
Despite US Steel's rejection of the "unreasonable" offer from Cleveland-Cliffs, the United Steel Workers (USW) union, representing US Steel workers, has expressed support for the deal. ArcelorMittal's consideration comes after US Steel announced its initiative to explore interest from potential buyers following periods of declining revenue and profits.