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Cleveland-Cliffs bought Arcelormittal for $1.4 billion deal

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ArcelorMittal USA, is one of the largest steelmakers in the country,The company will also be the largest iron ore pellet producer in North America, with 28 million long tons of annual capacity.” is set to be acquired by CLEVELAND, N.C.

Details of the $1.4 billion deal were released early Monday morning.”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,” according to a press release.

The agreement is expected to close within the fourth quarter of this year, ArcelorMittal officials announced in a statement. “ArcelorMittal is a world class organization that we have long admired as our customer and our partner, and we know for a fact that they have taken good care of their US assets.”

Steelmaking is a business where production volume, operational diversification, dilution of fixed costs and technical expertise matter above all else, and this transaction achieves all of these,” said Lourenco Goncalves, President and CEO of Cleveland-Cliffs in a press release.

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Under the terms of the agreement, ArcelorMittal expects to receive an aggregate equity value consideration of $1.4 billion upon closing of the transaction, company officials said. Approximately one third of the consideration is in upfront cash ($505 million). The remaining two thirds of the consideration is in the form of equity.

“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,” said Lakshmi Mittal, Chairman and CEO of ArcelorMittal. “I would like to thank all employees of ArcelorMittal USA for their hard work in ensuring the business maintained its reputation as a trusted, quality supplier of steels for American manufacturing. I am confident you will have a bright future with Cleveland-Cliffs.”

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