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Cleveland-Cliffs buys AK Steel for $1 billion

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NEW YORK, NY -- Cleveland Cliffs have announced it has entered into a definitive merger agreement with AK Steel Holding Corporation.

Company officials say the merger means Cliffs will acquire all of the issued and outstanding shares of AK Steel common stock.

Cliffs is one of the world's largest producer of iron ore pellets, and AK Steel is a producer of flat-rolled carbon, stainless and electrical steel products.

Officials say the combined company will be positioned to provide high-value iron ore and steel solutions to customers primarily across North America.

In addition, company officials say the combination will ensure pellet volume commitments to AK Steel's blast furnaces with Cliffs' Toledo hot briquetted iron facility to complement its existing long-term minimum volume pellet offtake agreements with other steel producers.

Cliffs CEO Laurenco Goncalves is expected to lead the expanded organization after the transaction is complete, while Roger Newport, the CEO and Director of AK Steel, will retire.

Three members of AK Steel's Board of Directors will join the Cliffs Board, while two members of the Cliffs Board will step down.

Officials say the deal is expected to close in the first half of 2020.

Cliffs own Hibbing Taconite and United Taconite, as well as Northshore Mine, in northern Minnesota.

The Associated Press contributed to this report.

Krystal Frasier

Social Media and Digital Content Manager

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