The bidding war involved five serious parties, including a consortium. Initially proposing $48 per share, Nippon Steel increased its offer by nearly 15% within 24 hours. The negotiation process revealed key points, such as Nippon Steel's commitment to obtaining approval from the Committee on Foreign Investment in the United States (CFIUS) and a $565 million breakup fee.
Concerns from the White House and allies of President Joe Biden regarding security and potential job losses in unionized steelworker positions have surrounded the deal. Pennsylvania's significance as a swing state in the upcoming election adds to the political implications. The regulatory filing highlighted substantial antitrust concerns related to Cleveland-Cliffs, resulting in an increased breakup fee of $1.5 billion. Nippon Steel's deal includes a $565 million breakup fee.
Throughout the negotiations, national security, antitrust issues, and the labor agreement with the United Steelworkers (USW) played crucial roles. Despite confidentiality concerns and the USW's legal bidding right, Nippon Steel's attempts to discuss potential ownership were rebuffed. U.S. Steel's board of directors emphasized a robust and comprehensive strategic review process in the preliminary proxy statement. Both Cleveland-Cliffs and Nippon Steel refrained from commenting on the regulatory filing.
Comments
No comment yet.