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U.S. Steel, a legacy of the days of U.S. industrialist Andrew Carnegie and JP Morgan, is preparing to sell itself and said on Sunday it had hired financial advisers to review the The company’s bid.
company explain It has received multiple unsolicited bids, ranging from the possible acquisition of the entire company to specific assets. The board has initiated a review process with external financial and legal advisors to assess the company’s strategic alternatives.
U.S. Steel has warned that its efforts may not lead to a deal and said it would not comment further on the possible sale.
Two weeks ago, CEO David Burritt touted the company’s strength and thanked Washington for passing the American Inflation Reduction Act of 2022, which provides billions of dollars in funding for clean energy manufacturing.
“I would say the IRA is the wrong name. It’s a Manufacturing Recovery Act,” Burritt said. “We applaud those who have made this happen and we look forward to the tailwinds this will provide the steel industry for years to come.”
“I hope you can hear the excitement in my voice as I discuss these global trends, deglobalization, decarbonization, and how they align with the U.S. Steel Strategy,” he added.
“These are long-term tailwinds that will provide a boost as we execute our strategic transformation to become a less cost-intensive, less capital-intensive and less carbon-intensive business. The path to value creation is clear,” Burritt said.
Pittsburgh-based U.S. Steel has been a symbol of American manufacturing since its founding in 1901. Financier JP Morgan bought it from Carnegie and merged it with a rival to form the company’s “core.”
The company said its steel helped build Chicago’s Willis Tower and New York’s United Nations building, and supplied hundreds of millions of tons of steel to the U.S. military during World War II.
But U.S. Steel has struggled in recent years. Its shares are down 24 percent from five years ago, lagging the S&P Materials benchmark.
According to an Aug. 7 report from S&P, the company has rapidly transitioned its production to include more electric arc furnace steelmaking, while shutting down inefficient and high-emitting blast furnaces. Standard & Poor’s said US Steel’s goal is to reduce its greenhouse gas emissions intensity by 20% by 2030.
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