Time: 2024-07-15
Cleveland - Cliffs announced on February 17 , 2023 , that they will acquire Stelco Holdings , a Canadian steel company , in a deal worth approximately .5 billion ( C.4 billion ) . The acquisition will be a combination of cash and stock , with Cleveland - Cliffs offering C0.00 in cash and 0.454 shares of its common stock for each share of Stelco . This deal values each Stelco share at a total of C0.00 , a significant premium compared to Stelco 's previous closing price of C7.36 . As a result of this announcement , Cleveland 's stock fell by nearly 5 % in premarket trading.
Lourenco Goncalves , the CEO of Cleveland - Cliffs , highlighted the benefits of the acquisition , stating that it would provide the company with a lower cost structure compared to constructing a new mill in the United States . Stelco currently operates in two locations in Ontario , including a steelmaking facility at Lake Erie Works and a downstream finishing and cokemaking facility at Hamilton Works . The strategic acquisition of Stelco will expand Cleveland - Cliffs ' presence in the steelmaking industry and enhance its operational capabilities.
The steel industry plays a crucial role in the economy of both the United States and Canada . With this acquisition , Cleveland - Cliffs aims to strengthen its position in the market and capitalize on the synergies between the two companies . By integrating Stelco 's operations into its existing framework , Cleveland - Cliffs can streamline its production processes and drive efficiency across its supply chain . This move is expected to generate significant cost savings and enhance the overall competitiveness of the combined entity in the global steelmaking sector.
As the acquisition progresses , investors and industry analysts will closely monitor the developments surrounding Cleveland - Cliffs and Stelco . The successful integration of the two companies will be key to realizing the anticipated benefits of the deal . With a focus on operational excellence and strategic growth initiatives , Cleveland - Cliffs is poised to expand its market presence and drive long - term value for its stakeholders . The acquisition of Stelco marks a significant milestone for Cleveland - Cliffs as it continues to navigate the dynamic landscape of the steel industry.