ArcelorMittal, the world's second-largest steelmaker and a major supplier to the auto industry, is considering a potential offer for U.S. Steel Corp., three people familiar with the matter told Reuters on Wednesday.
ArcelorMittal is discussing a possible offer with its investment bankers, and there is no certainty that it will press ahead with it, the sources said.
If it does launch a bid, it could mark the escalation of a bidding war that is already underway for U.S. Steel, following offers from Cleveland-Cliffs Inc. and Esmark Inc for more than $7 billion.
A potential takeover of U.S. Steel by another steelmaker could have a significant impact on U.S. automaker customers of the companies. U.S. Steel has supplied North Amerian automakers for generations.