Cleveland-Cliffs To Buy ArcelorMittal's US Unit For $1.4B
Cleveland-Cliffs To Buy ArcelorMittal's US Unit For $1.4B
Cleveland-Cliffs Inc (NYSE:CLF) announced Monday it has signed an agreement to purchase the United States unit of ArcelorMittal S.A. (NYSE:MT).
What Happened: The $1.4 billion transaction would be made on a cash-free and debt-free basis with 78.2 million shares of the Cleveland-Cliffs common stock — worth about $460 million as of Friday’s closing. Additionally, it would involve the transfer of non-voting preferred Cleveland-Cliffs stock worth approximately $373 million and $505 million in cash, Cleveland-Cliffs said in a statement.
The company expects cost savings to the tune of $150 million annually after the transaction is completed.
Goldman Sachs Group Inc’s (NYSE:GS) investment arm is acting as financial advisor to Cleveland-Cliffs, while BofA Securities, the investment banking arm of Bank of America Corporation (NYSE:BAC), to ArcelorMittal.
The deal is expected to close in the fourth quarter of 2020, subject to regulatory approval.
Why It Matters: Post-transaction, Cleveland-Cliff would become the largest flat-rolled steel producer in North America with combined shipments of 17 million net tons in 2019, according to the company.
ArcelorMittal was looking to offload $2 billion of assets by the middle of 2021 to reduce its debt and agreed to sell a 50% stake in its shipping business in December, Reuters reported.
The Luxembourg-based steel maker has also sold its stake in Brazillian steelmaker Gerdau S.A. (NYSE:GGB).
Price Action: Cleveland-Cliffs shares closed nearly 3% higher at $5.88 on Friday. On the same day, ArcelorMittal shares closed almost 0.3% lower at $12.09 and fell almost 1.5% in the after-hours session.
Photo by Borvan53 on Wikimedia
Cleveland-Cliffs Inc (NYSE:CLF) announced Monday it has signed an agreement to purchase the United States unit of ArcelorMittal S.A. (NYSE:MT).
What Happened: The $1.4 billion transaction would be made on a cash-free and debt-free basis with 78.2 million shares of the Cleveland-Cliffs common stock — worth about $460 million as of Friday’s closing. Additionally, it would involve the transfer of non-voting preferred Cleveland-Cliffs stock worth approximately $373 million and $505 million in cash, Cleveland-Cliffs said in a statement.
發生的事情：這筆14億美元的交易將在無現金和無債務的基礎上進行，截至週五收盤，克利夫蘭-懸崖普通股-價值7820萬股，價值約4.6億美元。此外，克利夫蘭-克里夫斯在一份聲明中表示，這將涉及轉讓價值約3.73億美元和5.05億美元現金的無投票權優先股。
The company expects cost savings to the tune of $150 million annually after the transaction is completed.
該公司預計，交易完成後，每年可節省1.5億美元的成本。
Goldman Sachs Group Inc’s (NYSE:GS) investment arm is acting as financial advisor to Cleveland-Cliffs, while BofA Securities, the investment banking arm of Bank of America Corporation (NYSE:BAC), to ArcelorMittal.
The deal is expected to close in the fourth quarter of 2020, subject to regulatory approval.
這筆交易預計將在2020年第四季度完成，有待監管部門批准。
Why It Matters: Post-transaction, Cleveland-Cliff would become the largest flat-rolled steel producer in North America with combined shipments of 17 million net tons in 2019, according to the company.
重要的原因：交易完成後，克利夫蘭-克里夫將成為北美最大的平軋鋼材生產商，據該公司稱，2019年的總出貨量為1700萬淨噸。
ArcelorMittal was looking to offload $2 billion of assets by the middle of 2021 to reduce its debt and agreed to sell a 50% stake in its shipping business in December, Reuters reported.
路透社(Reuters)報道，安賽樂米塔爾(ArcelorMittal)希望在2021年年中之前出售20億美元的資產，以減少債務，並在去年12月同意出售其航運業務50%的股份已報告.
The Luxembourg-based steel maker has also sold its stake in Brazillian steelmaker Gerdau S.A. (NYSE:GGB).
這家總部位於盧森堡的鋼鐵製造商還出售了其在巴西鋼鐵製造商的股份。Gerdau S.A.紐約證券交易所代碼：GGB).
Price Action: Cleveland-Cliffs shares closed nearly 3% higher at $5.88 on Friday. On the same day, ArcelorMittal shares closed almost 0.3% lower at $12.09 and fell almost 1.5% in the after-hours session.
價格行動：克利夫蘭--Cliff股價週五收高近3%，報5.88美元。同一天，安賽樂米塔爾股價收盤下跌近0.3%，至12.09美元，盤後下跌近1.5%。
Photo by Borvan53 on Wikimedia
博爾萬53在維基媒體上的照片
譯文內容由第三人軟體翻譯。
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