Cleveland-Cliffs CEO Lourenco Goncalves appeared on CNBC Thursday. He stated that Japan’s Nippon Steel’s $14.9 billion deal for US Steel had already fallen apart and reiterated that his Ohio-based steel company was the only viable buyer. This follows reports that President Biden is preparing to block the Nippon-US Steel merger.

CNBC’s Morgan Brennan asked Goncalves if Cleveland-Cliffs would still entertain purchasing US Steel if the Nippon-US Steel deal falls apart. He responded, “This deal has already fallen …” But stopped short. 

Goncalves continued: 

“So, it was the most predictable outcome that I could ever have seen in our steel business. How come a company, a foreigner, that has been a perpetrator of numerous trade cases and unfair trade practices in the United States, one of the main ones responsible for the decimation of the steel industry in the United States and union jobs, believes that they can come here and scoop assets from one of our companies and take care of their own businesses without any regard to our industry, our national security, and our supply chains? 

‘So, I’m glad that finally you are seeing the end — the light at the end of the tunnel.” 

CNBC highlighted on X that in a December interview, Goncalves predicted Nippon Steel’s bid would collapse, leaving Cleveland-Cliffs as the only viable bidder for US Steel.

Cleveland Cliffs CEO Lourenco Goncalves tells @MorganLBrennan and @JonFortt he is still interested in buying US Steel. He predicted back in December the deal with Nippon Steel would fall apart and would “absolutely” be a bidder.$X $CLF #NipponSteel #Steel pic.twitter.com/zvNnWvIidp

— CNBCOvertime (@CNBCOvertime) September 5, 2024

Goncalves wrote in a statement published on Cleveland-Cliffs’ website that he’s working with JPMorgan Chase and Wells Fargo to revive a deal to acquire US Steel.  

It’s worth noting that Nippon Steel outbid Cleveland-Cliffs with a $55 per share offer, compared to Cleveland-Cliffs’ $35 per share for US Steel.

Goncalves applauded media reports that suggest the Biden administration is preparing to block the foreign takeover of US Steel officially:

“We commend President Biden and the US government for its reported decision to block foreign ownership of US Steel by Japan’s Nippon Steel. The American steel industry plays a crucial role in safeguarding our national security. President Biden’s courageous move affirms our view that our industry is best served by American companies that are committed to the long-term prosperity of domestic manufacturing, supported by good paying union jobs, under American ownership.”

“After decades of unfair trade practices causing harm to American steel companies and union jobs, it is no surprise to us that the United Steelworkers union (USW) adamantly opposes any transaction involving Nippon Steel, a company with an extensive track-record of injurious trade practices. The last-minute threats by US Steel to shut down integrated steelmaking production, fire union workers, and move their headquarters from Pittsburgh if their deal does not close, is just a pathetic blackmail attempt on the United States government and the Commonwealth of Pennsylvania. By taking immediate action, our government is showing that this type of shameless behavior will never be tolerated.”

“With the continued exclusive and unwavering support of the United Steelworkers union, and with ample financing support available from our bank group led by J.P. Morgan and Wells Fargo, Cleveland-Cliffs stands ready to immediately acquire and invest in any and all union-represented assets that US Steel shuts down, protecting union jobs and investing in the future livelihoods and communities in which the facilities operate.”

In markets, shares of US Steel are up 3% after plunging 25% on Wednesday due to media reports suggesting Biden is preparing to block the deal. 

Bloomberg quoted Wolfe Research analyst Timna Tanners as saying, “For now, steel prices are pretty weak and I don’t think that Cliffs will have the wherewithal to be doing that kind of transaction anytime soon, at least easily.”