CLEVELAND, OH-- Cleveland Cliffs, Inc. is acquiring AK Steel in a stock deal valued at about $1.1 billion.
Under the agreement Cliffs will acquire all issued and outstanding shares of AK Steel common stock.
President and CEO of Cliffs, Lourenco Goncalves, will lead the expanded organization.
The companies said Tuesday that they are creating a vertically integrated business. Cliffs, North America’s largest producer of iron ore pellets, would get access to AK Steel’s flat-rolled carbon, stainless and electrical steel products operations.
AK Steel is based near Cincinnati, Ohio.
Goncalves said the deal will provide flexibility to pursue additional growth opportunities.
AK Steel Holding Corp. stockholders will receive 0.40 shares of Cliffs stock for each AK Steel share they own. Cliffs shareholders will own approximately 68% of the combined company and AK Steel shareholders will own about 32%.