Cleveland-Cliffs to Acquire AK Steel

Cleveland-Cliffs to acquire AK Steel. Cleveland-Cliffs to acquire AK Steel. |  Photo: WDIO FILE

Updated: December 03, 2019 06:14 PM

Cleveland-Cliffs announced on Tuesday morning that they have entered into a definitive merger agreement with AK Steel to acquire the company. 


According to Cliffs, it will combine North America's largest producer of iron ore pellets and a leading producer of innovative of flat-rolled carbon, electric, and stainless steels.

CEO Lourenco Goncalves said that AK Steel will keep its name. AK will become a wholly owned subsidiary of Cliffs.

Goncalves said that they will explore the pig iron route, instead of looking at a second HBI facility. The first HBI facility is being built in Toledo, and will be using pellets made at Northshore Mining. Also, they will be looking at using HBI in AK's blast furnaces. "This is the beginning of the road to greener steel," Goncalves said.

The deal also solidifies a customer for Cliffs' pellets.

Shareholders still need to vote on the agreement. The deal is expected to close in 2020.

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