DewDiligence
7 days ago
CLF acquires Canada’s Stelco for $2.5B* cash/stock—an 87% premium to STLC.TO’s closing price on 7/12/24:
https://www.clevelandcliffs.com/news/news-releases/detail/643/cleveland-cliffs-announces-the-acquisition-of-stelco Cleveland-Cliffs Inc…is pleased to announce that it has entered into a definitive agreement to acquire Stelco Holdings Inc. (TSX:STLC) ("Stelco"). The acquisition confirms Cliffs’ commitment and leadership in integrated steel production in North America, and also brings an additional 1,800 United Steelworkers ("USW") union employees into Cliffs’ workforce.
Under the terms of the agreement, Stelco shareholders will receive CAD $60.00 per Stelco common share in cash and 0.454 shares of Cliffs common stock per share of Stelco common stock (or CAD $10.00 per share as of July 12, 2024), representing a total consideration of CAD $70.00 per Stelco share.
The transaction has received full support from David McCall, International President of the USW union.
The transaction implies a total enterprise value of approximately USD $2.5 billion (CAD $3.4 billion) for Stelco and represents an acquisition multiple of 4.8x 3/31/24 LTM [last twelve months] Adjusted EBITDA with synergies. Cliffs has a clear line of sight to the achievement of approximately $120 million of estimated annual cost savings with no impact to union jobs.
The acquisition is expected to be immediately accretive to 2024 and 2025 EPS. The transaction implies pro forma net leverage of 2.4x 3/31/2024 LTM Adjusted EBITDA. 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.
Stelco is an integrated steelmaker consisting of two operational sites, both located in the province of Ontario: Lake Erie Works, the newest and lowest-cost integrated steelmaking facility in North America; and Hamilton Works, a downstream finishing and cokemaking facility. Stelco ships approximately 2.6 million net tons of flat-rolled steel annually, primarily hot-rolled steel to service center customers.
…Upon closing of the transaction, Stelco is expected to continue operations as a wholly-owned subsidiary, preserving the name and legacy of the business.
… The transaction has been unanimously approved by Cliffs’ and Stelco’s respective Boards… The transaction is expected to close in the fourth quarter of 2024, subject to approval by Stelco shareholders, receipt of regulatory approvals and satisfaction of other customary closing conditions. *Enterprise value. The nominal deal value (i.e. the market value of the cash + stock consideration) is approximately $2.8B (C$3.85B). $1 = C$1.36.
abracky
3 weeks ago
Cleveland-Cliffs to Announce Second-Quarter 2024 Earnings Results on July 22 and Host Conference Call on July 23
Source: Business Wire
Cleveland-Cliffs Inc. (NYSE: CLF) will announce its second-quarter 2024 earnings results after the U.S. market close on Monday, July 22, 2024.
The Company invites interested parties to listen to a live broadcast of a conference call with securities analysts and institutional investors to discuss the results on Tuesday, July 23, 2024, at 8:30 am ET. The call can be accessed at www.clevelandcliffs.com and will also be archived and available for replay at that address.
About Cleveland-Cliffs Inc.
Cleveland-Cliffs is the largest flat-rolled steel producer in North America. Founded in 1847 as a mine operator, Cliffs also is the largest manufacturer of iron ore pellets in North America. The Company is vertically integrated from mined raw materials, direct reduced iron, and ferrous scrap to primary steelmaking and downstream finishing, stamping, tooling, and tubing. Cleveland-Cliffs is the largest supplier of steel to the automotive industry in North America and serves a diverse range of other markets due to its comprehensive offering of flat-rolled steel products. Headquartered in Cleveland, Ohio, Cleveland-Cliffs employs approximately 28,000 people across its operations in the United States and Canada.
?
View source version on businesswire.com: https://www.businesswire.com/news/home/20240701721806/en/
MEDIA CONTACT:
Patricia Persico
Senior Director, Corporate Communications
(216) 694-5316
INVESTOR CONTACT:
James Kerr
Director, Investor Relations
(216) 694-7719
abracky
4 weeks ago
Cleveland-Cliffs to Host U.S. Senator Sherrod Brown and USW International President David McCall at Cleveland Works
Source: Business Wire
Cleveland-Cliffs Inc. (NYSE: CLF) announced that Lourenco Goncalves, Chairman, President and Chief Executive Officer is hosting Senator Sherrod Brown (OH) and leadership from the United Steelworkers, David McCall, USW International President and Donnie Blatt, Director of USW District 1, at its Cleveland Works plant in Ohio on Wednesday, June 26 for a press conference. Senator Brown’s visit follows the recent bipartisan legislation introduced to stop the dramatic increase in Mexican steel imports. The Stop Mexico’s Steel Surge Act reinstates the 232 tariffs on Mexican steel imports at 25 percent, for no less than a year, and gives the President of the United States the authority to impose additional quotas and tariff rate quotas on specific products if necessary. Senator Brown has led efforts pushing the current administration to take aggressive action to enforce the agreement to level the playing field for American manufacturers and workers in the steel industry.
During the visit, Senator Brown will meet with Cleveland-Cliffs’ CEO Lourenco Goncalves and USW International President David McCall, as well as with local union leaders and employees regarding this important trade enforcement matter. Mr. Goncalves will be hosting a press conference with Senator Brown, David McCall and Donnie Blatt that will be live streamed on the Company’s YouTube channel.
Featured Speakers
U.S. Senator Sherrod Brown (OH)
David McCall, USW International President
Donnie Blatt, Director of USW District 1
Lourenco Goncalves, Cleveland-Cliffs' Chairman, President and Chief Executive Officer
Livestream Details:
Cleveland-Cliffs Program
Wednesday, June 26, 2024
Time: 11:15 a.m. ET
The live broadcast is accessible via Cleveland-Cliffs’ YouTube channel:
Cleveland-Cliffs Live Stream Link
A replay will be available after the event on Cleveland-Cliffs’ channel.
About Cleveland-Cliffs Inc.
Cleveland-Cliffs is the largest flat-rolled steel producer in North America. Founded in 1847 as a mine operator, Cliffs is also the largest manufacturer of iron ore pellets in North America. The Company is vertically integrated from mined raw materials, direct reduced iron, and ferrous scrap to primary steelmaking and downstream finishing, stamping, tooling, and tubing. Cleveland-Cliffs is the largest supplier of steel to the automotive industry in North America and serves a diverse range of other markets due to its comprehensive offering of flat-rolled steel products. Headquartered in Cleveland, Ohio, Cleveland-Cliffs employs approximately 28,000 people across its operations in the United States and Canada.
?
View source version on businesswire.com: https://www.businesswire.com/news/home/20240624980801/en/
MEDIA CONTACT:
Patricia Persico
Senior Director, Corporate Communications
(216) 694-5316
INVESTOR CONTACT:
James Kerr
Director, Investor Relations
(216) 694-7719
abracky
1 month ago
Up soon.
Cleveland-Cliffs has received several prestigious industry awards for its business and financial performance.
Annual S&P Global Platts Global Metals Awards
The Global Metals Award program recognizes exemplary performance in the metals and mining industry. Cleveland-Cliffs took top honors in three categories.
2021: The Deal of the Year Award
Recognizing the significance and success of the Company’s 2020 acquisitions.
2021: Metals Company of the Year
Selecting a company for all-around excellence in executing a total metals strategy.
2021: CEO/Chairperson of the Year
Honoring a leader who is highly respected by both peers and competitors, admired and followed by employees, trusted by investors and welcomed by the community. Mr. Goncalves was recognized for his leadership and taking decisive action and adapting to market shifts by balancing long-term growth with short-term challenges.
General Motors Supplier of the Year
GM recognized the best and distinguished global suppliers with the highest quality and innovation in the automotive industry. This is the fourth consecutive year Cleveland-Cliffs/AK Steel has received this award.
Association for Iron & Steel Technology (AIST) Steelmaker of the Year
The Steelmaker of the Year award recognizes prominent leaders and their contribution to the steel industry. Mr. Goncalves was honored for his distinguished career, strong leadership, passion and outstanding contributions to the global mining and steel industries for more than 30 years.
Fastmarkets Global Awards for Steel Excellence - Advocate of the Year
The Steel Excellence awards honor truly exceptional and the “best of the best” steel industry thought leaders and organizations.
Mr. Goncalves was named Advocate of the Year for his longtime leadership within the steel industry and transformation of Cliffs into a leading steel company.
Fastmarkets Global Awards for Steel Excellence - Scrap Company of the Year
The Steel Excellence awards honor truly exceptional and the “best of the best” steel industry thought leaders and organizations.
Ferrous Processing and Trading Co. was recognized by steel producers, service centers, scrap companies, pipe and tube producers and suppliers of materials and services in the steel industry.
Association of Steel Distributors (ASD) Steel Executive of the Year
This award, received by Mr. Goncalves, recognizes distinguished individuals who have made lasting contributions to the steel distribution industry over a significant period of time.
General Motors Supplier of the Year
GM recognized the best and distinguished global suppliers with the highest quality and innovation in the automotive industry. This is the sixth consecutive year Cleveland-Cliffs has received this award.
Willy Korf/Ken Iverson Steel Vision Award
2022: Mr. Goncalves was presented with the award, which honors individuals who have made significant contributions to the steel industry while promoting goodwill and integrity.
abracky
2 months ago
Cleveland-Cliffs Reminds U.S. Steel: You Have No Path to Close
Source: Business Wire
Cleveland-Cliffs Inc. (NYSE: CLF) today addressed the inaccurate allegations published by the U.S. Steel Board on May 21, 2024, regarding its doomed attempt to sell its company to a foreign buyer without Union support.
Lourenco Goncalves, Cliffs Chairman, President and Chief Executive Officer, said:
“At Cleveland-Cliffs, we only deal with transparency. It is unfortunate that the U.S. Steel Board of Directors is just now realizing that it announced an un-closeable deal and is trying to blame Cliffs for its terrible decision-making.
There has been nothing we have publicized or said publicly that could be described as ‘misinformation.’ From our first offer to acquire U.S. Steel to our final (now expired) offer on December 15, we stressed the necessity of keeping U.S. Steel American-owned and having the full support of the Union. Our position has never changed.
The key piece of ‘misinformation’ has been the U.S. Steel Board of Directors insisting that the Union had no veto power. That ‘misinformation’ remains on U.S. Steel and Nippon Steel’s deal website.
Since we only deal with transparency, let’s state the facts:
As we have explained to U.S. Steel since day 1, the United Steelworkers (USW) has declared they would only support Cleveland-Cliffs for a proposed acquisition of U.S. Steel. We see that as a de-facto veto power to disallow the acquisition of the entirety of U.S. Steel or USW-represented assets by anyone else other than Cleveland-Cliffs.
On August 15, 2023, the late Tom Conway, former USW International President, said the union only endorses Cleveland-Cliffs to acquire U.S. Steel. This came after Conway said he received countless calls from potential bidders seeking the union’s approval – a necessary legal step for anyone seeking to buy U.S. Steel. David McCall, current USW International President, confirmed he only learned about Nippon Steel as an acquirer on the day that the deal was announced, December 18, 2023.
The President of the United States, Joe Biden, has said that U.S. Steel should remain a ‘totally American company’ and ‘that is going to happen, I promise you…Guaranteed.’ Presidential candidate Donald Trump has said, regarding the transaction, ‘I would block it instantaneously. Absolutely.’
In our Final Offer (now expired) to U.S. Steel on December 15, we noted specifically that Nippon Steel would present a CFIUS risk, along with the inherent risks of choosing a buyer without Union support. The Final Offer letter and the Powerpoint presentation attached to the Final Offer have now been uploaded to our clevelandcliffs.com website. We address CFIUS on page 2 of the letter and on page 14 of the presentation.
David McCall, International President of the USW, has said ‘A merger between Nippon and USS would negatively impact workers, retirees, our communities, and our national security, and your Union is working in Washington, in the public, and under our BLA to stop it.’"
Mr. Goncalves concluded: “With a USW-represented facility, you are not entitled to sell to whomever you please. We knew this, and you apparently did not. We tried to explain to you, but you did not listen to us. The Board of Directors of U.S. Steel failed its stockholders in this ‘strategic review process,’ and is attempting to blame Cliffs for its own self-inflicted disaster. My opinion remains the same: You cannot and will not close your announced deal with Nippon Steel.”
About Cleveland-Cliffs Inc.
Cleveland-Cliffs is the largest flat-rolled steel producer in North America. Founded in 1847 as a mine operator, Cliffs also is the largest manufacturer of iron ore pellets in North America. The Company is vertically integrated from mined raw materials, direct reduced iron, and ferrous scrap to primary steelmaking and downstream finishing, stamping, tooling, and tubing. Cleveland-Cliffs is the largest supplier of steel to the automotive industry in North America and serves a diverse range of other markets due to its comprehensive offering of flat-rolled steel products. Headquartered in Cleveland, Ohio, Cleveland-Cliffs employs approximately 28,000 people across its operations in the United States and Canada.
?
View source version on businesswire.com: https://www.businesswire.com/news/home/20240521891412/en/
MEDIA CONTACT:
Patricia Persico
Senior Director, Corporate Communications
(216) 694-5316
INVESTOR CONTACT:
James Kerr
Director, Investor Relations
(216) 694-7719
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