Flat-rolled steel and iron ore pellets manufacturer Cleveland-Cliffs Inc. finished its acquisition of steelmaker ArcelorMittal USA and its subsidiaries from its parent company ArcelorMittal this month, the parties announced in separate releases.

“The sale of ArcelorMittal USA is an opportunity to create excellent value for our shareholders and reposition our North American footprint on our most competitive assets, for which we have targeted growth plans,” Lakshmi Mittal, chairman and CEO of ArcelorMittal, said in a statement. “The recently announced EAF at Calvert and the new hot strip mill in Mexico, which will complete next year, will further enhance these assets and ensure we have the flexibility and quality to meet demand, particular for higher-added value products. We intend to remain a strategic player in the NAFTA region.”

Under the terms of the deal, ArcelorMittal received $505 million in cash, 78 million shares of Cleveland-Cliffs’ common stock and non-voting preferred stock that can be redeemed for 58 million shares of common stock or its cash equivalent.

Lourenco Goncalves, chairman, president, and CEO of Cleveland-Cliffs said the acquisition of ArcelorMittal USA marks the start of “a new chapter in the history of the steel business in the United States.”

“The assets we have acquired will be combined with our existing footprint, including AK Steel, Precision Partners, AK Tube, several mining and pelletizing facilities, our Research & Development Center, and the most modern Direct Reduction plant in the world, which we have just started to operate in Toledo, OH,” Goncalves said. “Our new footprint expands our technological capability and enhances our operational flexibility, elevating Cleveland-Cliffs to a prominent role as a major player in supporting American manufacturing, American future investments in infrastructure, and the prosperity of the American people through good paying middle-class jobs.”

ArcelorMittal USA generated pro-forma revenues of $17 billion during 2019.

Powder & Bulk Solids first reported on ArcelorMittal’s plan to divest its US-based business in September.