Market Segment
Cleveland-Cliffs sets Nov. 1 closing date for Stelco deal
Written by Laura Miller
October 30, 2024
Cleveland-Cliffs has received all the required approvals to finalize its $2.5-billion acquisition of Canadian steelmaker Stelco Holdings Inc.
The transaction is set to close this Friday, Nov. 1.
The two steelmakers said on Wednesday that they had received the final approvals needed to close the deal under the Investment Canada Act and Strategic Innovation Fund.
This means the deal, first announced in July, will have been completed in under four months’ time.
That’s much faster than the other big M&A story of 2024: Nippon Steel’s proposed $14.9-billion acquisition of U.S. Steel, first announced in December 2023, which has faced opposition from the start. The two companies still hope to close that deal by the end of this year.
Recall that the Cliffs/Stelco deal has the support of the United Steelworkers (USW), while the Nippon/USS deal still does not.
On Friday, upon Cliffs closing the Stelco deal, 1,800 USW members will join the Cleveland-Cliffs team, which already includes over 15,000 workers represented by various unions across its US mills.
We’ll hear more about the plans for the combined company when Cliffs releases its third-quarter earnings report next week.
Laura Miller
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