SEATTLE (Scrap Monster): Cleveland-Cliffs Inc. announced successful completion of substantially all of the operating assets of ArcelorMittal USA and its subsidiaries. The acquisition makes it the largest flat-rolled steel producer in the entire North American region, with combined revenue of approximately $17 billion.
The acquisition includes the interests of ArcelorMittal USA of 60% in I/N Tek L.P. and 50% in I/N Kote L.P. In addition, Cleveland-Cliffs also acquired Nippon Steel Corporation’s remaining interests of 50% in I/N Kote and 40% in I/N Tek. With this transaction, Cleveland-Cliffs has now emerged as the sole owner of 100% of I/N Tek and I/N Kote.
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Further to the deal, ArcelorMittal has received $505 million in cash in addition to 78 million shares of redeemable Cleveland-Cliffs common stock and non-voting preferred stock. Also, Cleveland-Cliffs has assumed net liabilities of ArcelorMittal USA of approximately $0.5 billion and pensions and OPEB liabilities.
Commenting on the deal, Lakshmi Mittal, Chairman and CEO, ArcelorMittal thanked everyone at ArcelorMittal USA for their valuable contribution to the group. The sale will create an excellent opportunity to create value for its shareholders and reposition its North American assets for future accelerated growth. The company continues to remain a strategic player in the NAFTA region, he added.
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