US-based Cleveland-Cliffs Inc. has announced that it has completed the acquisition of ArcelorMittal USA LLC and its subsidiaries, forming the largest flat rolled steel producer in North America.
Under the terms of the sale, ArcelorMittal has received $505 million cash, 78 million shares of Cleveland-Cliffs common stock, and non-voting preferred stock which is redeemable for approximately 58 million shares of Cleveland-Cliffs common stock or an equivalent amount in cash.
“The acquisition by Cleveland-Cliffs of ArcelorMittal USA opens a new chapter in the history of the steel business in the United States. The assets we have acquired will be combined with our existing footprint, including AK Steel, Precision Partners, AK Tube, several mining and pelletizing facilities, our Research & Development Center, and the most modern Direct Reduction plant in the world, which we have just started to operate in Toledo, Ohio. Our new footprint expands our technological capability and enhances our operational flexibility, elevating Cleveland-Cliffs to a prominent role as a major player in supporting American manufacturing, American future investments in infrastructure, and the prosperity of the American people through good paying middle-class jobs,” Lourenco Goncalves, CEO of Cleveland-Cliffs, stated.