USW Cannot Block Sale of Company, Says U. S. Steel
08/18/2023 - United States Steel Corporation said yesterday that the labor agreement it has in place with the United Steelworkers (USW) does not give the union the right to veto the sale of the company, the Reuters news service reports.
The company’s statement comes after the USW said it would only back Cleveland-Cliffs Inc. as a buyer.
According to Reuters, in a regulatory filing, “U. S. Steel said its agreement with the union gives the latter the right to counter with its own acquisition offer for assets covered under their bargaining agreement. If the union does not make an offer its board deems superior, U. S. Steel can sell itself to the bidder of its choosing.”
The USW has transferred to Cleveland-Cliffs its right to counterbid for U. S. Steel assets, Reuters said.
U. S. Steel earlier this week received a US$7.3 billion offer from Cleveland-Cliffs and then a US$7.8 billion offer from Esmark. ArcelorMittal reportedly is weighing making a bid on the company.
