Cleveland-Cliffs to acquire ArcelorMittal USA in $1.4B deal
[WDIO-TV]
Cleveland-Cliffs, Inc., is planning to acquire ArcelorMittal USA in a deal valued at $1.4 billion, Hubbard Broadcasting sister station WDIO-TV reported Monday.
Cliffs is North America’s largest producer of iron ore pellets.
With this latest acquisition, WDIO reports Cliffs will control four of the six mines on the Iron Range. Cliffs currently owns and operates Northshore Mining and United Taconite, and is a partial owner of Hibbing Taconite with ArcelorMittal. After this latest acquisition, Cliffs will also own and operate Minorca Mine, WDIO reports.
In a statement, the CEO of Cliffs, Lourenco Goncalves, who will lead the expanded organization, said, "ArcelorMittal is a world class organization that we have long admired as our customer and our partner, and we know for a fact that they have taken good care of their U.S. assets. We look forward to welcoming the ArcelorMittal USA team into our organization."
Goncalves said this acquisition will boost Cliffs’ position in the automotive steel marketplace and will improve the company’s position in the construction, appliance, infrastructure, machinery and equipment industries, WDIO reports.
According to Cliffs, the transaction has been approved by the board of directors for both companies and is expected to close in the fourth quarter of this year, WDIO reports.
This acquisition follows a deal at the end of 2019 in which Cliffs acquired AK Steel in a deal valued at about $1.1 billion.