American iron ore and steel producer Cleveland-Cliffs has signed a $ 1.4 billion deal to acquire most of the assets of ArcelorMittal USA.
With the close of the deal in the fourth quarter, Cleveland-Cliffs will become the largest steel producer in North America, with a production capacity of 17 million tons per annum in 2019. It will also be the continent’s largest iron ore pellet producer with an annual capacity of 28 million tonnes.
“Steel is a business where production volume, operational diversification, lower fixed costs and technical expertise are paramount, and this deal achieves all of this,” said Lourenko Gonsalves, CEO of Cleveland-Cliffs. “ArcelorMittal is a world-class organization that we have long admired as our customer and our partner, and we know for sure that they have taken good care of their US assets.”
Gonçalves adds that the acquisition is backed by United Steelworkers and United Auto Workers.
“The acquisition of ArcelorMittal USA strengthens our position in the discerning automotive steel market and further enhances our position in important US markets such as construction, home appliances, infrastructure, machinery and equipment,” he says. “It also adds to our strong legacy raw material profile and growing finishing capabilities. The deal will enable us to become a more efficient fully integrated steel system capable of meeting all of our business and financial goals. ”
ArcelorMittal notes in a separate message that the deal does not concern its Hamilton, Ontario, Dofasco, ArcelorMittal Mexico plant or AM /NS legacy plant in Calvert, Alabama.
“This deal is a unique opportunity for ArcelorMittal to deliver significant shareholder value while maintaining impact on the North American economy through our high-quality NAFTA assets while engaging in what will become a stronger and more integrated US business,” says CEO Lakshmi … Mittal. “I would like to thank all of the ArcelorMittal USA employees for their hard work in maintaining our reputation as a reliable supplier of quality steel for American production. I am sure you will have a bright future with Cleveland-Cliffs. ”