Exclusive: ArcelorMittal is in talks to merge U.S. assets with Cleveland-Cliffs-Source

File photo: On July 7, 2016, a red-hot steel plate passes through a press at the ArcelorMittal steel plant in Ghent, Belgium.

(Reuters) – The world’s largest steelmaker, ArcelorMittal SA The company is seeking a merger deal with Cleveland-Cliffs Inc., the largest manufacturer of iron ore pellets, people familiar with the matter said on Sunday.

This combination will signal a new push among steel producers to integrate and diversify their business, making the swings in demand less sensitive. Last March, Cleveland-Cliffs launched a billion-billion-dollar flat-rolled carbon steel, including stainless steel, in the UK. The manufacturer will come after acquiring AK Steel.

A new listing suggests that Luxembourg-based ArcelorMittal’s assets could lead to a જોડા 2 billion and billion 1 billion U.S. wealth merger with Cleveland-Cliffs. It will be variable for the Cleveland-Cliffs, with a market value of 3. 3.3 billion and અંત 3 billion by the end of June. had a long-term debt of billions of dollars.

There is no certainty that negotiations will lead to a deal, sources said. However, a deal could be announced in the coming days if the talks prove successful, a source added.

The source requested confidential information as it was confidential. ArcelorMittal and Cleveland-Cliffs did not immediately respond to a request for comment.

ArcelorMittal’s U.S. The business has more than 18,000 employees and 25 facilities, including mines, steel making facilities and finished operations, according to the company’s website. Headquartered in Cleveland, Cleveland-Cliffs employs approximately 11,000 people in mining and steel production in the United States and Canada.

ArcelorMittal said last year that it aims to load ત્તિ 2 billion in assets by mid-2021 to reduce its debt. In December, it agreed to sell a 50% stake in its shipping business, and also sold its stake in Brazilian steelmaker Gardau.

After acquiring AK Steel, which accounted for 66% of its revenue from the automotive market in 2019, Cleveland-Cliffs saw a drop in demand from its car-making customers, which forced COVID-19 to suspend production earlier this year. Nationwide epidemic.

Reported by Greg Roumiliotis in New York; Edited by Peter Cooney