Cleveland-Cliffs Inc. has announced a definitive agreement to acquire Stelco Holdings Inc. The transaction values Stelco at approximately USD 2.5 bln. Upon completion, Cliffs shareholders will own about 95pct of the combined company, while Stelco shareholders will hold around 5pct, on a fully diluted basis.
Stelco is an integrated steelmaker with two operational sites in Ontario: Lake Erie Works, the newest and lowest-cost integrated steelmaking facility in North America, and Hamilton Works. Stelco ships about 2.6 mln net tons of flat-rolled steel annually, primarily hot-rolled products for service center customers.
This acquisition expands Cliffs’ steelmaking footprint and significantly increases its exposure to the flat-rolled spot market, providing cost advantages in raw materials, energy, healthcare, and currency. Stelco’s capabilities will complement Cliffs’ existing operations and product portfolio while diversifying its customer base in the construction and industrial sectors.
Following the transaction’s completion, Stelco is expected to operate as a wholly-owned subsidiary, maintaining its name and legacy. Stelco’s headquarters will remain in Hamilton, with the brand preserved across Hamilton, Nanticoke, and Canada.
Headquartered in Cleveland, Ohio, Cleveland-Cliffs is the largest flat-rolled steel producer in North America and the largest manufacturer of iron ore pellets in the region. Stelco produces a range of flat-rolled value-added steels, including coated, cold-rolled, and hot-rolled products, as well as pig iron and metallurgical coke.
