Cleveland-Cliffs Entered Into Agreement to Acquire Stelco Holdings
The transaction has received unanimous approval of both the Cliffs’ and Stelco’s Board of Directors.
SEATTLE (Scrap Monster): Cleveland-Cliffs Inc. announced that it has entered into a definitive agreement towards acquisition of leading integrated steelmaker Stelco Holdings, Inc. The transaction implies a total enterprise value of approximately USD $2.5 billion for Stelco.
The transaction has received unanimous approval of both the Cliffs’ and Stelco’s Board of Directors. The transaction is expected to close in the fourth quarter of the current year, subject to approvals by shareholders of Stelco, receipt of regulatory approvals and satisfaction of other customary closing conditions.
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Upon closing of the transaction, Stelco is expected to continue its operations as a wholly-owned subsidiary of Cleveland-Cliffs, thus preserving the name of legacy of the business. Stelco’s headquarters will remain in Hamilton. It will make additional capital investments at its Hamilton and Nanticoke operations. Furthermore, it will maintain significant employment levels in Canada.
Lourenco Goncalves, Chairman of the Board, President and CEO of Cliffs commented that the enterprise value of this transaction is significantly lower than the cost of building an equivalent replacement mill in the U.S. The ownership of Stelco will be a net benefit for Canada, the province of Ontario, and the cities of Nanticoke and Hamilton, he added.