Cleveland-Cliffs agreed on 28 September to acquire substantially all of ArcelorMittal USA for approximately $1.4 billion, in a deal that reshapes the North American steel industry. The price comprises $505 million in cash, about 78.2 million Cleveland-Cliffs shares, and non-voting preferred stock valued at about $373 million. Including the pension and other post-employment liabilities Cleveland-Cliffs will assume, the enterprise value of the transaction is about $3.3 billion. The assets include six steelmaking facilities, eight finishing facilities, two iron ore mining and pelletising operations, and three coal and cokemaking operations. Once completed, Cleveland-Cliffs will become the largest flat-rolled steel producer in North America, with combined shipments of about 17 million net tons in 2019. In 2018 and 2019 ArcelorMittal USA averaged annual revenues of about $10.4 billion and adjusted earnings of about $700 million a year. Cleveland-Cliffs expects about $150 million in annual cost savings from the combination. The deal, approved by both boards, was expected to close in the fourth quarter of 2020, subject to regulatory approval.
Source: Cleveland-Cliffs Inc. — https://www.clevelandcliffs.com/_assets/_aa77e7cce243a9cf0fd5d1769c4fc1a2/clevelandcliffs/news/2020-09-28_Cleveland_Cliffs_Inc_to_Acquire_ArcelorMittal_13.pdf
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