The deal, worth $1.4 billion, will comprise $505 million cash and about two-thirds in equity to the world’s largest Steelmaker ArcelorMittal, according to the press release. ArcelorMittal will give up a quarter of Cleveland-Cliffs’ business share and permit it to reward shareholders with share buy-back.
- Equity arrangement will give ArcelorMittal a 16% stake in Cleveland-Cliffs but could rise to 25.5%
- Deal to include $ 2 billion liabilities, making the overall value to be $3.4 billion
- ArcelorMittal has passed its target $2 billion assets offloading to reduce debt, which allows it to participate in a $500 million, share buy-back.
- ArcelorMittal will continue serving the North American market through operations in Canada and Mexico, which jointly made 9 million steel tonnes last year.
- ArcelorMittal’s business produced 12.9 million tonnes of steel in the US in 2019 and has 18,000 employees with 25 facilities, comprising steel-making facilities, mines, and finishing operations.
The deal will make Cleveland-Cliffs the largest flat-rolled North American steel producer. MT: NYSE premarket is up 9.43%, CLF: NYSE premarket is up 8.50%.