Form 8-K · Current Report · Filed 2024-07-15
Cleveland-Cliffs Announces Acquisition of Stelco Holdings
Cleveland-Cliffs Inc. announced on July 15, 2024, its entry into a definitive agreement to acquire Stelco Holdings Inc., a Canadian integrated steelmaker. Under the terms of the Arrangement Agreement, Stelco shareholders will receive CAD $60.00 per share in cash and 0.454 shares of Cliffs common stock per Stelco common share, amounting to a total consideration of CAD $70.00 per share. The transaction, which has an enterprise value of approximately USD $2.5 billion, is expected to close in the fourth quarter of 2024, subject to shareholder and regulatory approvals. The acquisition is anticipated to be immediately accretive to Cliffs' 2024 and 2025 earnings per share and is expected to generate approximately $120 million in annual cost savings. Upon completion, Cliffs shareholders will own approximately 95% and Stelco shareholders will own approximately 5% of the combined company.
- Filer
- Cleveland-Cliffs Inc. CLF · NYSE
- Filed
- Accession
- 0000764065-24-000160
- CIK
- 0000764065
- Signal
- Medium impactBasic Materials
- Source
- Official filing on sec.gov ↗
Items reported
Entry into a Material Definitive Agreement
Other Events
Financial Statements and Exhibits
Market reaction
Close before filing
$16.17
Next session
-1.5%
Since filing
-28.8%
Latest close
$11.52
What happened, not what will happen — closing prices around the filing date.
Precedent
Previous filings from CLF reporting the same item, with the next session's move:
Exhibits (1)
About Cleveland-Cliffs Inc.
Cleveland-Cliffs Inc. is a leading integrated producer of flat-rolled steel products in North America. The company operates through a robust supply chain that spans a wide range of steel manufacturing processes, including mining, pelletizing, and direct reduced iron production. As a major supplier of steel to various industries, Cleveland-Cliffs serves critical sectors such as automotive, construction, and manufacturing, providing essential materials used in the production of vehicles, appliances, and infrastructure projects. Founded in 1847, Cleveland-Cliffs has evolved from a small iron mining operation into a comprehensive steel powerhouse, reflecting its importance to the U.S. economy and robust industrial base. The firm's strategic acquisitions and production capabilities enhance its position in the market, allowing it to reduce reliance on third-party suppliers and maintain greater control over the quality of its steel products. Cleveland-Cliffs stands out in the financial market due to its significant impact on raw material supply chains and its role in supporting industrial growth and development across North America.
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