(Reuters) -Cleveland-Cliffs is partnering with peer Nucor 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, the CNBC report said.
Shares of U.S. Steel rose 8.9% in afternoon trading.
The report came after the Biden administration delayed an order for Nippon Steel to abandon its $14.9 billion bid for U.S. Steel until June.
Nucor declined to comment, while Cleveland-Cliffs, U.S. Steel and Nippon did not immediately respond to Reuters’ requests for comment.
(Reporting by Shivansh Tiwary and Nathan Gomes in Bengaluru; Editing by Tasim Zahid and Maju Samuel)
