Esmark has submitted a $7.8 billion takeover bid for U.S. Steel, topping an earlier $7.3 billion offer from Cleveland-Cliffs that U.S. Steel rejected Sunday. Esmark also said it had made an all-cash takeover bid, raising competition in the battle to acquire the iconic steelmaker.

Founded in 1901, U.S. Steel dominated the steel industry for many decades as a leading supplier of steel to automakers, appliance manufacturers and construction companies. Today, the company has become the focus of several bids to integrate its iron ore smelters and mines with other steel companies. U.S. Steel is considered one of the higher-cost steel producers, but some of its segments may be attractive to other players in the steel sector. In particular, the company boasts substantial iron ore reserves, which are increasingly in demand due to declining scrap steel supplies. Esmark is a Pennsylvania-based industrial conglomerate with deep ties to the steel industry. Esmark is led by James Bouchard, former vice president of U.S. Steel's European operations, and specializes in steel processing and distribution.

In the last few decades, the sector has seen a significant decline due to the shift of production abroad and the dominance of low-cost Chinese producers in the supply chain. However, recent developments such as the steel tariffs imposed by President Donald Trump, along with infrastructure improvements and initiatives to shift production back to the US pushed by the Biden administration, have recently strengthened the competitiveness of US steel producers.

Esmark's proposal values each U.S. Steel share at $35, a significant 54% premium to Friday's closing share price of $22.72.