Exclusive-ArcelorMittal weighs possible bid for US Steel -sources By Reuters

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<span>© Reuters. FILE PHOTO: A logo is seen at the ArcelorMittal metals plant in Dunkirk as part of a media tour dedicated to the reduction of carbon intensity of the industry in France, January 16, 2023. REUTERS/Benoit Tessier/File Photo</span><br />
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<p>By Greg Roumeliotis and Emma-Victoria Farr</p>
<p>(Reuters) -ArcelorMittal SA, the world’s second-largest steelmaker, is considering a potential offer for U.S. Steel Corp, three people familiar with the matter said on Wednesday.</p>
<p>ArcelorMittal (NYSE:) is discussing a possible offer with its investment bankers, and there is no certainty that it will press ahead with it, the sources said. </p>
<p>If it does launch a bid, it could mark the escalation of a bidding war that is already underway for U.S. Steel, following offers from Cleveland-Cliffs (NYSE:) Inc and Esmark Inc for more than $7 billion.</p>
<p>The sources requested anonymity because the deliberations are confidential. Representatives for ArcelorMittal and U.S. Steel did not immediately respond to requests for comment.</p>
<p>U.S. Steel shares rose 5.2% to $31.81 in New York on Wednesday afternoon. That compares to bids from Cleveland-Cliffs and Esmark that were both worth $35 per share when submitted. Esmark’s offer is all cash, while Cleveland-Cliffs would pay for the deal half with cash and half with its own stock. </p>
<p>ArcelorMittal’s deliberations come after U.S. Steel said on Sunday it had launched a process to explore interest from potential acquirers. The United Steelworkers union supports Cleveland-Cliffs’ bid, however U.S. Steel has rebuffed it as “unreasonable”. </p>
<p>U.S. Steel became an acquisition target following several quarters of falling revenue and declining profits, as it struggled with high raw material and energy costs.</p>
<p>ArcelorMittal, like its peers, has also been grappling with a slowdown in demand, as global economic growth slows. Last month it reported a second-quarter profit of $2.6 billion, half that of a year ago.</p>
<p>ArcelorMittal has said that global steel demand excluding China is expected to grow 1-2% this year, down from a previously forecast range of 2-3%, due to higher U.S. interest rates and weak construction activity in Europe.</p>
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