Cleveland-Cliffs to acquire AK Steel in $1.1b deal
2019-12-05 10:17:56 [Print]
US-based Cleveland-Cliffs Inc. said onTuesday it will acquire all of the issued and outstanding shares of AK Steel Holding Corporation for $1.1 billion.
Under the terms of the merger agreement, AK Steel's shareholders will receive 0.40 shares of Cleveland-Cliffs common stock for each outstanding share of AK Steel common stock they own. Cleveland-Cliffs' shareholders will own approximately 68% and AK Steel shareholders will own approximately 32% of the combined company, respectively, on a fully diluted basis.
The transaction will combine Cleveland-Cliffs, North America's largest producer of iron ore pellets, with AK Steel, the producer of flat-rolled carbon, stainless and electrical steel products, to create a vertically integrated producer of value-added iron ore and steel products.
Under the terms of the merger agreement, AK Steel's shareholders will receive 0.40 shares of Cleveland-Cliffs common stock for each outstanding share of AK Steel common stock they own. Cleveland-Cliffs' shareholders will own approximately 68% and AK Steel shareholders will own approximately 32% of the combined company, respectively, on a fully diluted basis.
The transaction will combine Cleveland-Cliffs, North America's largest producer of iron ore pellets, with AK Steel, the producer of flat-rolled carbon, stainless and electrical steel products, to create a vertically integrated producer of value-added iron ore and steel products.
