The transaction makes Cliffs the largest flat-rolled steel producer in North America after only entering the finished steel market in March with its acquisition of AK Steel.
Under the terms of the sale, ArcelorMittal has received $505 million in cash, 78 million shares of Cleveland-Cliffs common stock and non-voting preferred stock, which is redeemable for approximately 58 million shares of Cleveland-Cliffs common stock or an equivalent amount in cash, ArcelorMittal said.
In connection with the acquisition, which includes ArcelorMittal USA's portion of its joint venture in Alabama with Nippon Steel, Cliffs has also acquired the remaining 50% in I/N Kote and 40% in I/N Tek from Nippon, for a total consideration of approximately $183 million, Cliffs said.
With this additional transaction, Cliffs becomes the sole owner of 100% of I/N Tek and I/N Kote, which generated a combined $121 million of adjusted EBITDA in 2019, it said.
