As the Trump Administration’s tariff pause is set to expire next week, SunCoke Energy, Inc. (NYSE: SXC) announced plans to acquire Phoenix Global, a privately held provider of mill services to steel producers, for $325 million. The all-cash deal is structured as a reverse triangular merger and expected to close during the second half of 2025.
“With the addition of Phoenix, SunCoke will be diversifying into electric arc furnace operations, including carbon steel and stainless steel mills, and Phoenix’s global footprint will add international markets to SunCokes portfolio,” according to the transaction’s press release. SunCoke is based in Illinois, with operating facilities in also in Indiana, Ohio, Virginia and Brazil, while Phoenix is based in Pennsylvania and serves customers across 19 steel and stainless steel mill sites in North America, Brazil, Europe and South Africa.
Source: Visual Capitalist
As the foundation of our cars, buildings, and industry, steel is the most commonly used metal in the world – and also the most recycled. Archeologists have found evidence of primitive steel use dating as far back at 1800BC when Iron Age ironworkers heated iron over a fire, inadvertently adding carbon from the burning wood to create an alloy that was stronger and more flexible than iron alone.
Steel’s use became more widespread during the 19th century with the onset of the industrial revolution. Europe and North America used steel for railroads, bridges, skyscrapers, and factories that powered their industries. As the chart above depicts, the Europe, the United States, and the USSR dominated production for the vast majority of the 20th century, until Chin’s production exploded during the 2000s.
Domestic demand, government policies, and a large relatively low-cost labor pool fueled China’s rise to become the largest steel producer in the world. “Because of this enormous export volume, China is seen as dumping cheap steel on the global market to beat out competitors such as the U.S. and the EU,” according to Investopedia.
Source: GMK Center
The Trump Administration has sought to reinvigorate American steel production via tariffs. First imposed in April, the broad-based tariffs were quickly paused for 90 days to allow nations to come to agreements that permitted fair competition. Steel, along with aluminum and autos, remained under 10% blanket duties during the pause. This pause, however, is scheduled end July 9th and the broad-based tariffs are scheduled to resume without any trade agreements yet finalized. President Trump stated that it has been difficult to make trade deals with a number of foreign governments because they are “spoiled from having ripped us off for 30, 40 years.”
According to DealPulse’s M&A database, which harnesses both AI and attorneys to digest the granular deal points of publicly announced transactions, SunCoke is advised Latham & Watkins LLP, while Phoenix Global is advised by Gibson, Dunn & Crutcher LLP.
