Cleveland-Cliffs Inc. (NYSE: CLF), a leading North American steel producer, has successfully completed its acquisition of Stelco Holdings Inc., for a whopping C$3.27B. The move puts Cleveland-Cliffs’ at the forefront of steel production in North America, diversifies its end-markets, and expands its geographical presence in Canada.
Lourenco Goncalves, chairman, president, and CEO of Cleveland-Cliffs, stated, “Today marks a transformative step forward for Cleveland-Cliffs. By bringing Stelco into the Cliffs family, we are building on our commitment to integrated steelmaking and good paying union jobs in North America. This acquisition allows us to further diversify our customer base and lower our cost structure. We are excited about the opportunities this acquisition brings and appreciate the warm welcome we have received from all government officials in Canada. We take our permission to operate very seriously and aim to continue the Stelco legacy with dedication and purpose.”
Stelco will continue to operate as a wholly-owned subsidiary of Cleveland-Cliffs, preserving its well-known name. Alan Kestenbaum, executive chairman and CEO of Stelco, highlighted the significance of this acquisition, saying, “Over the past seven years, since the acquisition of the company, we have worked tirelessly with all of our stakeholders – our customers, our suppliers, the United Steelworkers, all of our valued employees and investors who believed in us – to restore Stelco as a North American leader in the steel industry and an iconic Canadian company. I am extremely proud of our track record of identifying and executing on operational improvements and competitiveness”.
