ROCKPORT, Ind. (WFIE) - Cleveland-Cliffs has announced they are buying AK Steel.
It’s a $1.1 billion stock swap.
You can read the full announcement here.
AK Steel has a production facility in Rockport.
The company says the transaction will combine Cliffs, North America’s largest producer of iron ore pellets, with AK Steel, a leading producer of innovative flat-rolled carbon, stainless and electrical steel products, to create a vertically integrated producer of value-added iron ore and steel products.
“We are excited to be able to deliver real value to the shareholders of both Cliffs and AK Steel through a value enhancing and leverage-neutral transaction," said President and CEO Laurenco Goncalves. "By combining the best-in-class quality of AK Steel’s assets and its enviable product mix with Cliffs’ debt profile and proven management team, we are creating a premier North American company, self-sufficient in iron ore pellets and geared toward high value-added steel products.”
The transaction is expected to close in the first half of 2020.
After the transaction, AK Steel’s CEO Roger Newport will retire.
Three AK Steel Board members will join the Cliffs Board, and two Cliff Board members will step down.
AK Steel will maintain their offices in West Chester, Ohio and research center in Middletown, Ohio.