Magnetics Business & Technology - January/February 2021 - 28

INDUSTRY NEWS

Cleveland-Cliffs Acquires ArcelorMittal USA for $1.4 Billion

Cleveland-Cliffs Inc. announced on December 9 that it has
closed on its acquisition of substantially all the operations of ArcelorMittal USA and its subsidiaries, forming the largest flat-rolled
steel producer in America with combined revenues of about $17
billion per year.

iron ore pellet producer in North America, with 28 million long
tons of annual capacity. In March, it acquired AK Steel for about
$3 billion which now operates as a subsidiary and remains a key
producer of electrical steel in North America and which also has
global operations.

" The assets we have acquired will be combined
with our existing footprint, including AK Steel,
Precision Partners, AK Tube, several mining and
pelletizing facilities, our Research & Development
Center, and the most modern direct reduction
plant in the world, which we have just started to
operate in Toledo, Ohio, " said Lourenco Goncalves, chairman and CEO.

In 2018 and 2019, ArcelorMittal USA averaged annual revenues
of approximately $10.4 billion and $700 million in earnings. The
assets to be acquired include 6 steelmaking facilities, 8 finishing
facilities, 2 iron ore mining and pelletizing operations, and 3 coal
and coke making operations.

Lorenco
Goncalves
CEO of
ClevelandCliffs

" Steelmaking is a business where production
volume, operational diversification, dilution of
fixed costs, and technical expertise matter above
all else, and this transaction achieves all of these.
ArcelorMittal is a world class organization that we have long
admired as our customer and our partner, and we know for a fact
that they have taken good care of their US assets, " said Lourenco Goncalves, chairman of the board, president and CEO of
Cleveland-Cliffs.
" We look forward to welcoming the ArcelorMittal USA team into
our organization. We are creating an exceptional company,
based on great people and supported by our existing strong
relationship with the United Steelworkers, the United Auto Workers and the Machinists unions. The acquisition of ArcelorMittal
USA amplifies our position in the discerning automotive steel
marketplace, and further improves our position in important U.S.
markets such as construction, appliances, infrastructure, machinery and equipment. "

ArcellorMittal, headquartered in the UK,
characterizes the deal as
a strategic repositioning
of its footprint in North
America. About one-third
of the transaction, $505
million, was expected to
be cash and two-thirds
of it paid as non-voting
equity in Cleveland-Cliffs,
making ArcelorMittal a
significant minority shareholder. ArcelorMittal will participate
in the upside potential of the larger combined company, which
is more diversified, fully integrated and has significant synergy
potential, it stated. It will continue with certain operations in
Canada, Mexico and AM/NS Calvert steel finishing facilities in
the US. The company plans to retain its research and development program and innovation centers.
For more information, visit www.clevelandcliffs.com, www.aksteel.com and www.arcelormittal.com.

The deal represents combined shipments of approximately 17
million net tons in 2019. Cleveland-Cliffs will also be the largest

28

Magnetics Business & Technology * January/February 2021

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Magnetics Business & Technology - January/February 2021

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Magnetics Business & Technology - January/February 2021
Editor’s Choice/ Features
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Tech Tips
Research & Development
Product News
Industry News
Events Calendar/ Advertising Index
Visions
Magnetics Business & Technology - January/February 2021 - Magnetics Business & Technology - January/February 2021
Magnetics Business & Technology - January/February 2021 - Cover2
Magnetics Business & Technology - January/February 2021 - 3
Magnetics Business & Technology - January/February 2021 - Editor’s Choice/ Features
Magnetics Business & Technology - January/February 2021 - 5
Magnetics Business & Technology - January/February 2021 - eTrucks and eBuses with Permanent Magnet Powertrains Charge into Commercial Vehicle Market
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Magnetics Business & Technology - January/February 2021 - 8
Magnetics Business & Technology - January/February 2021 - 9
Magnetics Business & Technology - January/February 2021 - Linear Labs Rolls Toward Production of Its Magnetic Flux Tunnel Motors
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Magnetics Business & Technology - January/February 2021 - Protean Electric’s In-Wheel Motor Reaches for Traction in Global EV and Industrial Markets
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Magnetics Business & Technology - January/February 2021 - Tech Tips
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Magnetics Business & Technology - January/February 2021 - Research & Development
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Magnetics Business & Technology - January/February 2021 - Product News
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Magnetics Business & Technology - January/February 2021 - Industry News
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