CA - Cleveland-Cliffs' Acquisition Of Stelco: Surprise M&A Enhances The Story

2024-07-16 10:52:17 ET

Summary

• Cleveland-Cliffs Inc. has had a tumultuous year with failed acquisition attempts, leading to downgrades and a decline in share price.
• Despite setbacks, Cliffs surprised investors with a successful acquisition of Canadian steelmaker Stelco Holdings Inc., enhancing their M&A strategy and shareholder value.
• Valuation update suggests a fair value rise to over $45 per share, with potential benefits from cost savings and an expanded customer base.

Cleveland-Cliffs Inc. ( CLF ) has had a newsworthy year, following a battle with Nippon Steel ( NPSCY ) to acquire U.S. Steel ( X ). The deal ultimately did not go through for either of them. This prompted many mainstream firms and analysts to downgrade CLF, such as GLJ Research and JPMorgan . The share price, which had already declined after the acquisition failed, tumbled further....

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