The latest deal could result in the merger of U.S. assets of Luxembourg-based ArcelorMittal that are worth between US$2 billion and $3 billion with Cleveland-Cliffs, one of the sources said. It would be transformative for Cleveland-Cliffs, which has a market value of $2.3 billion and had total long-term debt as of the end of June of $4.5 billion.
NEW YORK: ArcelorMittal SA, the world's largest steelmaker, is exploring a deal to merge its U.S. operations with Cleveland-Cliffs Inc, the largest U.S. producer of iron ore pellets, people familiar with the matter said on Sunday.
The combination would signal a new push among steelmakers to consolidate and diversify their business, making it less vulnerable to swings in demand. It would come after Cleveland-Cliffs acquired AK Steel, a U.S. maker of flat-rolled carbon steels, including stainless steel, for $3 billion, including debt, last March.
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