EVANSVILLE, Ind. (WEHT) – AK Steel is being purchased for more than $1 Billion by Ohio based Cleveland Cliffs Inc.
In a merger announcement released Tuesday, Cliffs detailed an agreement in which the company will acquire all shares of AK Steel common stock.
AK Steel shareholders will receive 0.40 shares of Cliffs common stock for each outstanding share of AK Steel common stock they own. Once the transaction is completed, Cliffs shareholders will own approximately 68% and AK Steel shareholders will own approximately 32% of the combined company, respectively, on a fully diluted basis.
The transaction values the stock around $1.1 billion with a value of approximately $3 Billion for AK Steel.
AK Steel has a steel production facility in Rockport that was built in 1997.
The transaction will combine Cliffs, North America’s largest producer of iron ore pellets, with AK Steel, a leading producer of innovative flat-rolled carbon, stainless and electrical steel products, to create a vertically integrated producer of value-added iron ore and steel products.
AK Steel will become a subsidiary of Cliffs and will retain its branding and corporate identity.
The transaction is expected to close in the first half of 2020.
(This story was originally published on December 3, 2019)