March 29, 2024 Press Release

Letter to White House on U.S. Steel

WASHINGTON, DC – Alliance for Automotive Innovation today sent a letter to White House National Economic Council Director Lael Brainard on recent developments related to the ownership of United States Steel Corporation (U.S. Steel).

John Bozzella, president and CEO, Alliance for Automotive Innovation, wrote:

“Public reports suggest that Cleveland-Cliffs Inc. (Cleveland-Cliffs), which unsuccessfully attempted to acquire U.S. Steel in 2023, has mobilized a campaign against Nippon Steel’s purchase. Cleveland-Cliffs continues to pursue an acquisition of U.S. Steel, despite the rejection of its initial offer that valued U.S. Steel at $7.25 billion – significantly lower than Nippon Steel’s $14.9 billion offer.

“Media reports also indicate that ‘Biden administration officials earlier this year studied brokering a sale of U.S. Steel to Cleveland-Cliffs instead, before deciding it wasn’t feasible…’

“That was an appropriate conclusion and it should remain the administration’s official policy toward any attempt by Cleveland-Cliffs to acquire all or parts of U.S. Steel in the future. In fact, given the current holdings of Cleveland-Cliffs, any combination between it and U.S. Steel deserves at least the same or more antitrust scrutiny.”

Bozzella added:

“If the administration has concerns about the Nippon Steel deal, it must seriously consider alternative outcomes. One option that should not be on the table is an arrangement that creates a market concentration of domestic steel production in a single company.

“Beyond the antitrust implications, this move would expose the broader manufacturing sector to possible supply chain interruptions or shortages – disruptions that could undermine the administration’s signature initiatives.”

Read the full letter HERE.

Read Alliance for Automotive Innovation’s earlier letter to Congress (October 31, 2023) on U.S. Steel HERE.