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Cleveland-Cliffs to Acquire Stelco for C$70 per Share in $2.5 Billion Deal, Stock Down 6%

Jul 15, 2024, 10:51 AM

Cleveland-Cliffs announced its acquisition of Canadian steelmaker Stelco Holdings in a deal valued at approximately $2.5 billion, with some reports estimating the value at CAD $3.4 billion and about $2.8 billion. The transaction includes C$60.00 in cash and 0.454 Cliffs shares per Stelco share, totaling C$70.00 per share. The acquisition is expected to enhance North American steel production and deliver cost savings and earnings growth. Cleveland-Cliffs' stock dropped 6% following the announcement. The CEO highlighted that the transaction's enterprise value is significantly lower than the cost of building an equivalent replacement mill in the United States.