Metal Industry News

Cliffs, AK Expect March 13 Close

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Cleveland Cliffs Inc. and AK Steel Holding Corp. have extended the expiration date in connection with the previously announced exchange offers by Cliffs and consent solicitations by AK Steel to March 13. The companies expect to close their merger on the new expiration date, earlier than anticipated.

In December, Cliffs and AK Steel entered into a merger agreement, whereby AK Steel becomes a wholly owned subsidiary of Cliffs.

The transaction will combine Cliffs, North America’s largest producer of iron ore pellets, with AK Steel, a producer of flat-rolled carbon, stainless and electrical steel products, to create a vertically integrated producer of value-added iron ore and steel products. The combined company will be ideally positioned to provide high-value iron ore and steel solutions to customers primarily across North America, executives from the two companies claim.

Under the terms of the merger agreement, AK Steel shareholders will receive 0.4 shares of Cliffs common stock for each outstanding share of AK Steel common stock they own. Upon completion of the transaction, Cliffs shareholders will own approximately 68 percent and AK Steel shareholders will own approximately 32 percent of the combined company, respectively, on a fully diluted basis.