Stelco reportedly mulling bid for U.S. Steel
Canada's biggest steelmaker, Stelco Holdings (STLC.TO), is looking to make a bid for U.S. Steel (X), according to a report from Bloomberg. Stelco would be interested in buying the entire company and is in talks with a partner for the bid, the outlet reports. Yahoo Finance Live breaks down the stock's reaction.
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Video Transcript
SEANA SMITH: --US Steel, because shares moving to the upside here, up just about 1% ahead of the open. Now just this week, Stelco, which is Canada's largest steel maker, pursuing a bid for the company. This is according to recent reports. Now, this comes after a month along, or about a month after US Steel rejected a takeover offer from Cleveland-Cliffs.
Now, lots to unpack here. One, just the interest that we've seen in US Steel over the last month. We saw that massive jump in share price following the interest that Cleveland-Cliffs did express there in US Steel. But this potential offer that we could see from Stelco, it's a bit surprising given the size difference of the two and the fact that US Steel is so much larger than Stelco.
BRAD SMITH: Yeah, and the history of Stelco as well, something worth bringing up too. I mean, this is a company that had filed for bankruptcy protection and was bought by US Steel back in 2007. And so, had filed for bankruptcy protection also again in 2014, and then purchased by another company, Bedrock Industries. That was in 2017.
So all of this considered, you have some very interesting emergences of companies that are looking to buy US Steel here. And still going to be interesting to see where it ultimately nets out, if there is a deal that gets accepted. But as of right now, as you mentioned, the Cleveland-Cliffs deal, that was the one most recently that had come to light after there were some other mystery potential buyers that were also involved here.
So ticker symbol X, one to potentially keep an eye on as more of these interesting bids emerge from way downtown.
SEANA SMITH: Yeah, certainly. And Stelco reportedly is looking for more exposure to supplying metal for the auto sector. So that's one of the reasons why they could potentially be interested in US Steel.
