Cleveland-Cliffs to acquire AK Steel in $1.1 billion deal

Cleveland-Cliffs, which is based in downtown Cleveland and bills itself as North America’s largest producer of iron ore pellets, will acquire all issued and outstanding shares of AK Steel common stock.

“By combining the best-in-class quality of AK Steel’s assets and its enviable product mix with Cliffs’ debt profile and proven management team, we are creating a premier North American company, self-sufficient in iron ore pellets and geared toward high value-added steel products,” Lourenco Goncalves, Cliffs’ chairman, president and CEO, said in a statement.

“Our shareholders will benefit from exposure to a larger, more diversified company that is better positioned to capitalize on growth opportunities,” Newport said in a statement.

One such growth opportunity, Goncalves said, is possibly bringing an idled AK Steel blast furnace in Ashland, Kentucky, back online to produce merchant pig iron.

Cliffs will continue to be listed on the New York Stock Exchange and will maintain its Cleveland headquarters.

AK Steel’s offices in West Chester, and a research and innovation center in Middletown, will remain open.

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