AK Steel, a leading producer of flat-rolled carbon, stainless, and electrical steel products was recently acquired by Cleveland-Cliffs Inc., an iron ore company, with a definitive merger agreement to position the new company to create a vertically integrated producer of value-added iron ore and steel products.
Under the terms of the merger, Cleveland-Cliffs will acquire all of AK Steel’s common stock, and expand their capabilities across the entire manufacturing process, from mining to pelletizing to the development and production of finished high-value steel products, including next-generation advanced high strength steels for automotive and other industries.
“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,” said Lourenco Goncalves, chairman of the board, president, and CEO of Cleveland-Cliffs, who will lead the expanded organization. He added that the new company “is well-positioned to serve both the blast furnace and electric arc furnace segments.”
“The combination of Cliffs’ iron ore pellet capabilities and our innovative, high-quality steel product development and production is strategically compelling,” said Roger K. Newport, CEO of AK Steel. “Together, we expect to be able to take advantage of growth opportunities faster and more fully than either company could on its own. With AK Steel’s 120-year heritage, which began in Ohio, and expertise in steelmaking, AK Steel and Cliffs make an excellent combination, which we expect will facilitate a smooth integration process.”
