Cleveland-Cliffs (NYSE:CLF) stock is on the move Monday after the flat-rolled steel producer announced its acquisition of Stelco (OTCMKTS:STZHF) for 3.4 billion CAD.
This will have Cleveland-Cliffs paying 70 CAD per share for the Canadian steel company. This represents an 87% premium of the stock’s closing price on Friday. Its also a 37% premium to its 52-week high.
Cleveland-Cliffs chairman, President and CEO Lourenco Goncalves said the following about the purchase of Stelco:
“Stelco is a company that respects the Union, treats their employees well, and leans into their cost advantages. With that, they are a perfect fit for Cleveland-Cliffs and our culture. We look forward to proving that our ownership of Stelco will be a net benefit for Canada, the province of Ontario, and the cities of Nanticoke and Hamilton.”
CLF Stock: Details of the Stelco Deal
Cleveland-Cliffs will need approval from regulators and two-thirds of its shareholders before the deal can close. Stelco will need a majority approval from its shareholders to close the deal.
If all of this goes well, the two companies expect the acquisition to close in the fourth quarter of 2024. The boards at both companies are advising shareholders to vote in favor of the agreement.
CLF stock is up slightly while STZHF stock is up 73.4% as of Monday morning.
Investors looking for more of the most recent stock market stories are in luck!
There are plenty more stock market stories worth reading about on Monday! A few examples include what’s happening with shares of Amazon (NASDAQ:AMZN), Super Micro Computer (NASDAQ:SMCI) and Meta Platforms (NASDAQ:META) stock. You can find out more on these matters down below!
More Monday Stock Market News
- Amazon Stock Is on Watch Ahead of Potentially Record-Breaking Prime Day
- SMCI Stock Alert: Super Micro Computer Is Joining the Nasdaq-100
- Dear META Stock Fans, Mark Your Calendars for July 23
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
