Cleveland-Cliffs buying AK Steel in $1.1B stock deal

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FILE – In this Dec. 8, 2013 file photo, steel beams sit outside Arena de Sao Paulo in Sao Paulo, Brazil. President Donald Trump on Dec. 2, 2019 accused Brazil and Argentina of hurting American farmers through currency manipulation and said he’ll slap tariffs on their steel and aluminum imports to retaliate. (AP Photo/Ferdinand Ostrop, File)

CLEVELAND (AP) — Cleveland-Cliffs is buying AK Steel in a stock deal valued at about $1.1 billion.

After a brief spike in steel prices, U.S. steel producers have struggled since the Trump administration put steel tariffs into place last year. Domestic demand has slumped along with the energy sector as drillers pull back on purchases of steel pipe.

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 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%.

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