Cleveland-Cliffs buys ArcelorMittal's US business for $1.4b

By The Associated Press
Posted 9/28/20

CLEVELAND (AP) — Cleveland-Cliffs is making its second billion-dollar acquisition in less than a year with the purchase of steel maker ArcelorMittal's U.S. business for about $1.4 billion in cash …

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Cleveland-Cliffs buys ArcelorMittal's US business for $1.4b

Posted

CLEVELAND (AP) — Cleveland-Cliffs is making its second billion-dollar acquisition in less than a year with the purchase of steel maker ArcelorMittal's U.S. business for about $1.4 billion in cash and stock.

About a third of the deal will be an up front cash payment of about $505 million, the companies said Monday. ArcelorMittal, based in Luxembourg, will also receive stock in Cleveland-Cliffs valued at about $873 million.

In return the Cleveland iron ore mining company will get six steelmaking facilities, eight finishing facilities, two iron ore mining and pelletizing operations, and three coal and coke making operations.

The deal is expected to close in the fourth quarter of 2020 and will make Cleveland-Cliffs the largest producer of flat-rolled steel and iron ore pellet in North America, the company said.

“The acquisition of ArcelorMittal USA amplifies our position in the discerning automotive steel marketplace, and further improves our position in important U.S. markets such as construction, appliances, infrastructure, machinery and equipment,” said CEO Lourenco Goncalves.

ArcelorMittal USA averaged more than $10 billion in revenue in 2018 and 2019. Cleveland-Cliffs does about $2 billion in annual revenue. The companies said the acquisition will save it about $150 million annually.

Late last year, Cleveland-Cliffs bought AK Steel in a stock deal valued at about $1.1 billion.

Shares in Cleveland-Cliffs climbed more than 10% Monday.

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