United States Steel Loses Bidder Esmark Amid Pressure From Union Workers

Industrial conglomerate Esmark has reportedly backed out of bidding for the acquisition of United States Steel Corp X.

The move came amid pressure from the United States Steel's workers union, who support the bid from Cleveland-Cliffs Inc CLF, as per WSJ.

Last week, Esmark CEO James Bouchard stated their intention to offer $35 per share to United Steel, following an offer of the same amount by CLF.

As per Esmark Chief, the union has threatened to use its power to block other companies, apart from CLF, from attempting to acquire the company.

Notably, U.S. Steel had earlier rejected CLF's offer to acquire 100% of the company for $17.50 per share in cash and 1.023 shares of Cleveland-Cliffs stock. 

Also, the company clarified that its current labor agreement with the United Steel Workers (USW) does not grant the union veto power over potential company sale decisions. 

The company said it is considering multiple offers for all or a part of its business. 

Apart from CLF, ArcelorMittal SA MT is also rumored to be considering bidding for the acquisition. 

Price Action: X shares are trading lower by 1.60% at $30.82 premarket on the last check Thursday.