XME - Cleveland-Cliffs Doubles Down on Steel with $2.5B Acquisition Expects $120M in Annual Savings | Benzinga
Cleveland-Cliffs Inc. (NYSE:CLF) shares are trading lower today. The company entered into a definitive agreement to acquire Stelco Holdings Inc. (OTC:STZHF) for a total enterprise value of around $2.5 billion (CAD3.4 billion).
Stelco is an integrated steelmaker consisting of two operational sites, both located in the province of Ontario. Stelco ships approximately 2.6 million net tons of flat-rolled steel annually, primarily hot-rolled steel to service center customers.
As per the deal, Stelco shareholders will receive CAD60.00 per share in cash plus 0.454 shares of Cliffs common stock per Stelco share (or CAD10.00 per share as of July 12, 2024), making a total of CAD70.00 per Stelco share.
The acquisition values Stelco at a ...