ArcelorMittal to sell its US steel assets to Cleveland-Cliffs for $1.4 billion
The world’s largest steel producer, ArcelorMittal, has agreed to sell nearly all its integrated US operations to Cleveland-Cliffs for $1.4 billion in cash and shares, the two companies announced on Sept 28 in separate releases.
The deal will make Cleveland-Cliffs the largest flat-rolled steel producer in North America, with combined shipments of around 17 million st in 2019.
The company will also be the largest iron ore pellet producer in North America, with 28 million long tons of annual capacity.
“This transaction is a unique opportunity for ArcelorMittal to unlock significant value for shareholders while retaining exposure to the North American economy through our high-quality NAFTA assets alongside a participation in what will be a stronger, better integrated, US business,” ArcelorMittal Chairman and CEO Lakshmi Mittal said.
The transaction is expected to close by the end of the fourth quarter, subject to receipt of regulatory approvals and satisfaction of other customary closing conditions. The acquisition does not include the Dofasco integrated facility in Canada, the Calvert processing facility in Alabama, a 50:50 joint venture between ArcelorMittal and Japan’s Nippon Steel, or ArcelorMittal Mexico.
ArcelorMittal USA owns and operates several facilities, including mines, integrated steelmaking facilities, mini-mills and finishing operations. In 2019, ArcelorMittal USA had revenues of $9.9 billion and total steel shipments of 12.5 million short tons.