CRU: Cliffs purchase of Stelco brings big synergies, big risks

The recently announced acquisition of Stelco by Cleveland-Cliffs (Cliffs), priced at nearly three times book value, provides a great price for Stelco shareholders. And various synergies will likely leave Cliffs with tremendous runway for further growth in this deal.

Cliffs expects to close this deal in the fourth quarter of this year upon government approval. This approval is expected but not a given.

Josh Spoores

Josh Spoores joined CRU in 2012 as Principal Analyst and editor of CRU’s Steel Sheet Monitor and Steel Sheet Market Outlook. During that time, Mr. Spoores forecast prices, demand, production and trade of sheet and plate products for both Canada and the US for CRU's Steel Sheet & Plate Market Outlooks. Today, he heads up steel analysis and forecasting for the Americas region. Prior to joining CRU, he was a Senior Marketing Analyst at Severstal North America, founder of Steel Reality, a forward-looking market analysis firm using a models-based approach for flat rolled and plate steel. He was also the Market Research Manager at Majestic Steel USA, one of the largest flat rolled service centres in the USA. He has a BSc in Business Administration from Bowling Green State University.

Josh Spoores

Latest in Canada

Drilling activity eases in the US, moves higher in Canada

Algoma sees loss, shipments down 20% as second EAF nears first heat

Canada threatens legal action against Cliffs for Stelco layoffs

Stelco to indefinitely idle Hamilton finishing ops

Drilling activity increases in US and Canada