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09 December 2020 14:15 CET
ArcelorMittal announces that the sale of ArcelorMittal USA to Cleveland-Cliffs for a combination of cash and stock has completed today.
Under the terms of the sale, ArcelorMittal has received $505 million 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[1]. As agreed, Cleveland-Cliffs has assumed the liabilities of ArcelorMittal USA, including net liabilities of approximately $0.5 billion and pensions and other post-employment benefit liabilities (‘OPEB’)[2].
Commenting, Mr. Lakshmi Mittal, Chairman and CEO, ArcelorMittal, said:
“I would like to thank everyone at ArcelorMittal USA for the important contribution they have made to the group. We wish you all the best for the future – Cleveland-Cliffs will be acquiring a great team.
“The sale of ArcelorMittal USA is an opportunity to create excellent value for our shareholders and reposition our North American footprint on our most competitive assets, for which we have targeted growth plans. The recently announced EAF at Calvert and the new hot strip mill in Mexico, which will complete next year, will further enhance these assets and ensure we have the flexibility and quality to meet demand, particularly for higher-added value products. We intend to remain a strategic player in the NAFTA region.”
[1] Cleveland-Cliffs Inc.’s share price closed on 25/9/20 (the last day of trading prior to the transaction announcement) at $5.88; its closing price yesterday (8/12/20) was $13.04.
[2] For the balance sheet carrying values please refer to the financial statements included in ArcelorMittal’s 2019 annual report on Form 20-F.
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