(Reuters) – Cleveland-Cliffs (NYSE:CLF) is partnering with peer Nucor (NYSE:NUE) to prepare a potential bid for U.S. Steel, CNBC reported on Monday, citing sources.
According to the report, Cleveland-Cliffs would purchase U.S. Steel in an all-cash deal and then sell the company’s Big River Steel subsidiary to Nucor.
U.S. Steel’s headquarters would remain in Pittsburgh under the deal, CNBC added.
Shares of U.S. Steel rose 8.5% in late-morning trade.
The report comes after the Biden administration delayed an order for Nippon Steel to abandon its $14.9 billion bid for U.S. Steel until June.
Cleveland-Cliffs, U.S. Steel, Nucor and Nippon did not immediately respond to Reuters’ requests for comment.
