AMERICAN INDUSTRIAL ICON US STEEL IS ON THE VERGE OF BEING ABSORBED AS INDUSTRY CONSOLIDATES FURTHER

Associated Press

WITH two bidders revealed in a matter of days and more in the wings, United States Steel Corp. — a symbol of American industrialization that for more than a century helped build everything from the United Nations building in New York City to the New Orleans Superdome — appears be on the cusp of being absorbed.

Here's what's happened so far, and how the acquisition of U.S. Steel could reshape steelmaking globally.

BIDDING WAR

After rejecting a $7.3 billion buyout proposal from rival Cleveland-Cliffs on Sunday, U.S. Steel said it was considering its next move. On Monday, industrial conglomerate Esmark offered $7.8 billion for the Pittsburgh steelmaker.

Shares of U.S. Steel soared more than 30% Monday with good odds that bids for the 122-yearold steel producer will head higher.

U.S. Steel says it has other offers to consider as well, and the company gave no timeline for if and when it might make any decision about selling itself.

A POTENTIAL GIANT

Cleveland-Cliffs said its proposal, first made on July 28, would create a company that would be among the 10 biggest steelmakers in the world and one of the top four outside of China, which dominates global steel production. Cleveland-Cliffs CEO Lourenco Goncalves said a tie-up between the two U.S. steelmakers would create "lower-cost, more innovative and stronger domestic supplier for our customers."

Goncalves said he's ready to continue talks with U.S. Steel despite its rejection of the company's initial offer. Cleveland-Cliffs is the largest producer of flatrolled steel and iron in North America. Acquiring U.S. Steel would further shrink the number of players in the U.S. steelmaking industry, which has experienced significant consolidation in recent years, including the two steelmakers at the center of developments this week.