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Cleveland-Cliffs to buy ArcelorMittal’s US business

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ArcelorMittal plans to use $500m of the cash proceeds to repurchase shares, starting immediately

San Francisco, US — Cleveland-Cliffs will buy the US operations of ArcelorMittal for $1.4bn in cash and shares to become the biggest flat-rolled steel producer in North America.

The transaction will save about $150m in annual costs for the combined operations, improve Cleveland-Cliffs’ liquidity and is expected to boost its sales to the key automotive market. US steel prices have risen in recent months, driven by tight supply after plant usage dropped in response to weaker demand due to coronavirus lockdowns.

, the company said in a separate statement. In July the company was considering “structural changes” to the business as it adjusts to the effect of the coronavirus pandemic on global steel demand. The company suspended dividend payments earlier in 2020 and had previously set a target of about $2bn in asset sales to help reduce debt.

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