Representatives of the world’s largest steel producer are in talks with Cleveland-Cliffs about the possible sale of US assets. This was stated by Reuters with reference to well-informed sources.
Cleveland-Cliffs is the largest iron ore processor in the United States. If ArcelorMittal’s US assets were actually merged with Cleveland-Cliffs, it would be a sign that the industry giants are consolidating their positions and diversifying their business portfolios. All in order to create some immunity against the risk of falling demand for iron, steel and iron products.
Cleveland-Cliffs only acquired the American manufacturer of rolled stainless steel sheets, AK Steel last June. Cleveland-Cliffs paid three billion dollars for it. He could pay a similar amount for ArcelorMittal’s US assets. There is talk of an interval of two to three billion dollars.
Reuters said that it is still difficult to estimate whether talks between the two companies will continue or whether they will lead to an agreement. But if ArcelorMittal and Cleveland-Cliffs “slap”, it will come out in a few days. However, none of these companies wanted to comment on the alleged negotiations in any way.