- ArcelorMittal and Cleveland-Cliffs have announced a deal where Cleveland-Cliffs will acquire ArcelorMittal USA's 16MMT of blast furnace steelmaking assets for $3.4 billion.
- ArcelorMittal is selling high-cost assets and getting a fair 6x full-cycle EBITDA valuation for them, while retaining a high-quality finishing mill where it is also building a new EAF facility.
- After the deal, ArcelorMittal will be major Cleveland-Cliffs shareholder, potentially owning more than 25% of the equity, but may look to sell to return cash to shareholders and/or reduce leverage.
- This is a good deal for ArcelorMittal, showing that it is serious about transitioning toward a model that can drive better full-cycle returns on capital.
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ArcelorMittal Shows Its Serious About Self-Improvement With The Sale Of Its U.S. Operations