Cleveland-Cliffs Inc. to purchase ArcelorMittal; Weirton tin plant part of deal
ArcelorMittal has entered into an agreement with Cleveland-Cliffs Inc. that will see Cleveland-Cliffs purchase 100% of the shares of ArcelorMittal USA for a combination of cash and stock valued at $1.4 billion.
ArcelorMittal Weirton is included in the transaction.
According to a release from ArcelorMittal, the deal includes $505 million in up-front cash. The remaining value to ArcelorMittal comes from approximately 78 million shares of Cleveland-Cliffs common stock with value of $500 million, and non-voting preferred stock redeemable for approximately 58 million shares of Cleveland-Cliffs common stock with an aggregate value of $373 million or an equivalent amount in cash.
In addition, Cleveland-Cliffs will assume the liabilities of ArcelorMittal USA, including net liabilities of approximately $500 million and pensions and other post-employment benefit liabilities that Cleveland-Cliffs values at $1.5 billion.
“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.”