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Powder Bulk Solids Staff
September 29, 2020
2 Min Read
Image courtesy of ArcelorMittal
Steel and mining firm ArcelorMittal entered into an agreement to sell 100% of shares of ArcelorMittal USA to iron ore and steel producer Cleveland-Cliffs Inc., the companies announced in separate press releases Monday. The $1.4 billion transaction increases Cleveland-Cliffs’ capacity for flat-rolled steel and iron ore pellets.
“The acquisition of ArcelorMittal USA amplifies our position in the discerning automotive stell marketplace, and further improves our position in important US markets such as construction, appliances, infrastructure, machinery and equipment,” said Lourenco Goncalves, chairman of the board, president, and chief executive officer of Cleveland-Cliffs said in a statement. “It also adds to our strong legacy raw material profile and growing finishing capabilities. The transaction will enable us to become a more efficient, fully-integrated steel system, with the ability to realize all of our operational and financial goals.”
25 mines, integrated steelmaking facilities, mini-mills, finishing operations, and other facilities are currently owned and operated by ArcelorMittal USA. The deal includes six steelmaking facilities, eight finishing sites, two mining and pelletizing facilities, and three met coal/cokemaking plants. When the sale is completed, Cleveland-Cliffs will become North America’s largest producer of flat-rolled steel and iron ore pellets.
ArcelorMittal will continue to serve North America through its assets in Canada, Mexico and AM/NS Calvert in the US. The company also intends to retain its research and development assets and innovation centers in the region.
“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 Chief Executive Officer Lakshmi Mittal said in a statement.
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