In a significant development for the steel industry, shares of US Steel jumped more than 8% on Monday, reaching $37.15 per share, following reports that Cleveland-Cliffs and Nucor are contemplating a joint bid to acquire the company. The proposed offer is said to be in the high $30s per share, a move that comes on the heels of President Joe Biden's decision to block a previous acquisition attempt by Japan's Nippon Steel on national security grounds.

Under the proposed deal, Cleveland-Cliffs would purchase all of US Steel for cash and subsequently sell off the Big River Steel subsidiary to Nucor. The headquarters of US Steel would remain in Pittsburgh, ensuring continuity in the company's operations. This strategic move by Cleveland-Cliffs and Nucor aims to capitalize on the opportunity presented by the blocked Nippon Steel deal, which was valued at $55 per share and over $14 billion in total.

The backdrop to this potential acquisition is fraught with legal challenges. US Steel and Nippon Steel have filed lawsuits against Cleveland-Cliffs, its CEO Lourenco Goncalves, and United Steelworkers President David McCall, alleging collusion to block the Nippon deal. Cleveland-Cliffs has dismissed these lawsuits as a 'shameless effort' to shift blame for the failed acquisition. Additionally, the Biden administration has extended the deadline for Nippon to abandon its pursuit of US Steel until June, amidst ongoing litigation.

The involvement of Nucor in the potential bid adds a new dimension to the competition for US Steel. Nucor, the largest American steel maker, partnering with Cleveland-Cliffs, the second-largest, could significantly alter the dynamics of the domestic steel market. This partnership is seen as a strategic move to strengthen their positions against international competition, particularly in light of concerns about the impact of foreign ownership on national security and domestic supply chains.

The steel industry has been a focal point of national security discussions, with President Biden emphasizing the importance of a strong domestic steel industry for US supply chains. The blocked Nippon deal and the subsequent legal battles highlight the complexities of international mergers in sensitive sectors. As the situation develops, investors and industry watchers are closely monitoring the potential outcomes, with hopes that a higher stock price for US Steel could be on the horizon.

The ongoing saga of US Steel's potential acquisition continues to unfold, with Cleveland-Cliffs and Nucor's joint bid proposal adding a new chapter to the story. The implications for the steel industry, national security, and the broader economy remain to be seen, but one thing is clear: the battle for US Steel is far from over.