Cleveland-Cliffs acquires AK Steel

In the United States, Cleveland-Cliffs and AK Steel Holding Corporation have announced a definitive merger agreement under which Cliffs will acquire all issued and outstanding shares of AK Steel's common stock. Lorenko Gonsalves, Chairman of the Board, President and CEO of Cliffs, will lead the expanded organization.

Upon completion of the transaction, Cliffs shareholders will own approximately 68% and AK Steel shareholders will own approximately 32% of the combined company, respectively.

The deal will combine Cliffs, North America's largest iron ore pellet producer, with AK Steel, a leading manufacturer of innovative carbon, stainless and electrical steel flat products, to create a vertically integrated iron ore and steel products manufacturer. The combined company will be ideally positioned to provide high quality iron ore and rolled steel solutions to customers primarily in North America.

The combination of Cliffs' iron ore pellet capabilities and AK Steel's innovative high quality engineering and steel product manufacturing is strategically attractive. Together, the companies expect to be able to take advantage of growth opportunities faster and more fully than either company alone.