The auto industry is right to be concerned about the drama surrounding one of the most iconic companies in American history, United States Steel Corp.
U.S. Steel, one of the leading suppliers of steel products to the domestic auto industry, set a bidding war in motion last week when it announced it would assess alternatives after rejecting a $7.25 billion offer from Cleveland-Cliffs Inc.
Quickly afterward, Esmark Inc. offered $7.8 billion. In addition, No. 2 steel maker ArcelorMittal is considering jumping into the fray, sources told Reuters. As of press time, a deal had not been announced.
There's likely some trepidation in auto purchasing circles of the market power that a combined entity would have on steel pricing. And there would be legitimate concerns should Cleveland-Cliffs prevail, with one analyst saying it could dominate "well over 50 percent of the exposed auto market."