A joint bid for U.S. Steel from two domestic rivals has the potential support of Gov. Josh Shapiro.
In a statement to The Center Square on Monday, the governor’s office said Cleveland-Cliffs CEO Lourenco Goncalves has made “meaningful commitments to Pennsylvania” in conversations about a formal offer the Ohio-based company plans to make with Nocur, a steel manufacturer headquartered in North Carolina.
“Before the governor would even consider endorsing any potential deal, Cleveland-Cliffs needs to make a formal bid to buy U.S. Steel and present specific details on what it will do to protect Pennsylvania jobs for the long term,” said Manuel Bonder, Shapiro’s spokesman.
The governor’s optimism follows more than a year of public neutrality on a pending $14.9 billion merger between U.S. Steel and Japan-based Nippon Steel. The Biden administration blocked the sale on Jan. 3, citing unfair trade practices on the global market that pose a national security risk. After initially telling both companies to unwind the deal by the end of January, an extension has been granted through June.
In July 2023, the iconic steel company rejected a $7.3 billion bid from Cliffs because it worried that federal regulators may disapprove of a merger based on monopoly concerns.
The company filed a lawsuit on Friday saying Cliffs conspired with the United Steelworkers Union to derail the deal in hopes of steering the sale back into its court. Both organizations have vehemently denied the assertions.
Bonder said Goncalves’ commitment to move Cliffs’ headquarters from Cleveland to Pittsburgh was one promising factor. U.S. Steel has said that without the Nippon merger, it would leave the region and consolidate operations at its facilities in Arkansas.
The six-month extension on the Nippon-U.S. Steel merger gives supporters time to convince President-elect Donald Trump to support it. The soon-to-be 47th commander-in-chief supports Biden’s decision and would rather make the company profitable again through higher tariffs.
“As Governor Shapiro has stated before, he expects any potential buyer for U.S. Steel to demonstrate strong commitments to capital investment at the Mon Valley Works, keeping the headquarters in Pittsburgh, and protecting and growing jobs throughout western Pennsylvania,” Bonder said.
“The governor will continue working directly with steelmakers, steelworkers, elected leaders, and local officials to find a long-term solution that protects the future of steelmaking in western Pennsylvania and delivers for the workers who built U.S. Steel and this country.”
Shapiro’s public optimism about the proposal comes after more than a year of working behind the scenes to negotiate with the union leaders and Nippon executives. Among the concessions offered by the latter were a promise to keep U.S. Steel in Pittsburgh, back away from Chinese business dealings and maintain American citizens on the company’s board of directors.
The union was unmoved and claimed Nippon will reorganize the company down South to escape collective bargaining.
Supporters of the merger, including Senate President Pro Tempore Kim Ward, have pressed Shapiro for months to declare his position regarding the sale for the sake of thousands of U.S. Steel workers caught in the middle.
Critics also say his advocacy to change the fate of a Cliffs steel mill in Butler, Pa., in early 2024 has likewised raised questions about his allegiances.
Bonder said the governor’s focus isn’t on public statements or social media posts. Rather, he’s been involved in conversations “from the literal day that this proposed deal was announced” in December 2023.
