Cleveland-Cliffs Inc. entered into a definitive agreement with ArcelorMittal S.A. pursuant to which Cleveland-Cliffs will acquire substantially all of the operations of ArcelorMittal USA LLC and its subsidiaries for approximately $1.4 billion. Upon closure of the transaction, Cleveland-Cliffs will be the largest flat-rolled steel producer in North America, with combined shipments of approximately 17 million net tons in 2019. The company will also be the largest iron-ore pellet producer in North America, with 28 million long tons of annual capacity. The assets acquired include six steelmaking facilities (Indiana Harbor, Burns Harbor, Cleveland, Coatesville, Steelton and Riverdale), eight finishing facilities, two iron-ore mining and pelletizing operations, and three coal and cokemaking operations.
The acquisition furthers Cleveland-Cliffs’ commitment to environmentally and socially conscious steelmaking with self-sufficiency in HBI and pellets and also improves its operational capabilities and steelmaking cost performance. According to Cleveland-Cliffs, the deal also increases its exposure to the automotive end market and enhances its position for the future production of merchant pig iron.
The transaction has been approved by the board of directors of both companies and is expected to close in the fourth quarter of 2020.
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