The Competition Bureau of Canada has officially confirmed that it will not challenge the proposed acquisition of Canadian company Stelco by Cleveland-Cliffs. Under the terms of the agreement, Cleveland-Cliffs offered C$60.00 in cash and 0.454 shares of its common stock for each Stelco share, totaling C$70.00.
The transaction is anticipated to be finalized in Q4 2024, subject to the fulfillment or waiver of remaining closing conditions. Cleveland-Cliffs Inc. opened trading at C$17.23 per share, while Stelco Holdings Inc. opened trading at C$67.13 per share.
Stelco operates facilities in Ontario and will maintain its operations in Hamilton and Nanticoke. Since the announcement of the acquisition in July 2024, Stelco’s stock has increased significantly. Upon completion of the transaction, Cliffs’ shareholders will hold 95% ownership of the combined entity, while Stelco’s shareholders will own 5%.
The acquisition will allow Stelco to continue its significant operations and commit to capital investments in its facilities. Cleveland-Cliffs is a leading steel producer in North America, while Stelco is known for its advanced integrated steelmaking facilities.
For full disclosure, the information provided in this article is for informational purposes only and is not intended to be investment advice. It is advised to conduct thorough research before making any investment decisions.
