ArcelorMittal to sell its US steel assets

The world's largest steelmaker, ArcelorMittal, has agreed to sell nearly all of its US integrated operations to Cleveland-Cliffs for $ 1.4 billion in cash and stock, both companies announced in separate communications on September 28.

The deal will make Cleveland-Cliffs the largest producer of flat products in North America with cumulative shipments of about 17 million tonnes in 2019. The company will also become the largest producer of iron ore pellets in North America with 28 million long tonnes of rolled steel. annual capacity.

On the subject: ArcelorMittal will retain NAFTA presence after Cliffs deal: company

“This deal is a unique opportunity for ArcelorMittal to create significant shareholder value while maintaining impact on the North American economy through our high-quality NAFTA assets while participating in what will become a stronger and more integrated US business,” said ArcelorMittal Chairman and CEO Lakshmi Mittal said.

The deal is expected to close by the end of the fourth quarter, subject to regulatory approvals and other normal closing conditions. The acquisition does not include Dofasco's integrated plant in Canada, the Calvert processing plant in Alabama, a 50:50 joint venture between ArcelorMittal and Japan's Nippon Steel or ArcelorMittal Mexico.

ArcelorMittal USA owns and operates several businesses, including mines, smelters, mini factories and finishing works. In 2019, ArcelorMittal USA generated revenues of $ 9.9 billion and total steel shipments of 12.5 million short tons.