Cliffs shareholders to own 95% of combination (Il Sole 24 Ore Radiocor) - New York, 15 Jul - US steel producer Cleveland-Cliffs said it had agreed to buy Canadian peer Stelco Holdings in a deal valuing Stelco at around 2.5 billion dollars or 3.4 billion Canadian dollars.

Under the terms of the agreement, Stelco shareholders will receive 60.00 Canadian dollars per Stelco common share in cash and 0.454 shares of Cliffs common stock per share of Stelco common stock, representing a total consideration of 70.00 Canadian dollars per Stelco share.

Upon completion of the transaction, Cliffs shareholders will own approximately 95% and Stelco shareholders will own approximately 5% of the combined company, on a fully diluted basis.

The acquisition of Stelco expands Cliffs' steelmaking footprint and doubles Cliffs' exposure to the flat-rolled spot market, with cost advantages in raw materials, energy, healthcare, and currency, Cliff said.

), marking its first acquisition since a failed bid for rival U.S. Steel last year.

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(RADIOCOR) 15-07-24 16:57:44 (0485) 5 NNNN