Cleveland-Cliffs partnering with Nucor on potential bid for U.S. Steel, sources say [Video]

Cleveland Cliffs is partnering with rival Nucor in a potential bid for U.S. Steel, whose takeover by Japan’s Nippon Steel was blocked by the White House earlier this month, sources tell CNBC’s David Faber.

Cleveland-Cliffs would purchase all of U.S. Steel for all cash and then sell off the Big River Steel subsidiary to Nucor, the sources said. U.S. Steel’s headquarters would remain in Pittsburgh under the deal.

The offer would be in the high $30s a share. Nippon had planned to buy U.S. Steel for $55 per share in a deal valued at more than $14 billion.

U.S. Steel shares jumped more than 8% on Monday to $37.15 a share. CNBC has reached out to the companies for comment.

The White House over the weekend extended the deadline for Nippon to permanently end its pursuit of U.S. Steel until June, as the companies pursue a lawsuit in federal court against President Joe Biden‘s …