What is ArcelorMittal?
ArcelorMittal is a Luxembourgish multinational steel manufacturing corporation headquartered in Luxembourg City. The Arcelor Mittal steel is the world’s largest steel producer, with an annual crude steel production of 92.5 million metric.
What is Cleveland-Cliff?
Cleveland-Cliffs Inc. is a Cleveland, Ohio-based company specialized in the mining, beneficiation, and pelletizing of iron ore. The company is a public company.
In the recent ArcelorMittal news, two of the big companies decided to join hands as Arcelor steel decided to sell its US plants to mining company Cleveland-Cliffs for $1.4 Billion, retreating from older mills in the industrial heartland that underpinned its expansion into becoming America’s second-largest steel producer.
Watch the video below for more detailed view:
The Deal
This transaction brings together two of the most important companies in North America. According to a press release, Cleveland-Cliffs acquired 100% of ArcelorMittal’s shares —one-third in cash, and the rest in stock. The deal will make Cleveland-Cliffs the largest flat-rolled steel and iron ore pellet producer in North America.
With the acquisition of Arcelor Mittal USA announced on September 28th, Cleveland-Cliffs will complete the second step of this transformation into a fully-integrated, high-value steel enterprise.
Why did they Sell?
Aditya Mittal, President and Chief Financial Officer of ArcelorMittal, said the deal will save his company about $150 million in areas such as sourcing raw materials and supply chain efficiencies.
ArcelorMittal also expects about $500 million in cash proceeds from the deals distributed to shareholders through a buyback program that began 28th September 2020, according to the press release. Arcelor Mittal steel Cleveland is producing 1 ton of steel in nearly one worker hour. Read more similar topics from here.
