Arcelormittal Sells US Steel Assets

ArcelorMittal has agreed to sell the bulk of its US steelmaking assets to rival Cleveland-Cliffs for $1.4bn in a shares-and-cash deal that will offer a degree of consolidation in an industry long plagued by oversupply and volatility. The Luxembourg-based group said it would receive $500m in cash and the rest in stock for a division that had revenues of $9.9bn last year and includes mines, blast furnace plants, mini-mills that recycle scrap and finishing facilities. ArcelorMittal said the divestment would help it reduce net debt as it seeks to bolster its balance sheet, which came under strain after demand for the grey metal slumped during the pandemic and forced the company to raise $2bn in capital. “This transaction is a unique opportunity for ArcelorMittal to unlock significant value for shareholders while retaining exposure to the North American economy through our high-quality Nafta assets alongside a participation in what will be a stronger, better integrated, US business,” said chief executive Lakshmi Mittal.