Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, October 14, 2022

Article Excerpt

CLEVELAND-CLIFFS INC., $14.45, symbol CLF on New York, is the largest iron ore mining company in the U.S. It’s a major supplier of iron ore pellets to the North American steel industry. The company is also the largest flat-rolled steel producer in North America after buying AK Steel for $3.0 billion in stock in 2019 and the U.S. steel operations of ArcelorMittal in December 2020. In November 2021, Cleveland-Cliffs completed the acquisition of Detroit-based Ferrous Processing and Trading Company (FPT) for $775 million. Ferrous Processing is one of the largest processors and distributors of prime ferrous scrap in the U.S. FPT processes three million tons of scrap each year, with 50% of it being prime grade. The company operates 22 scrap processing facilities in the Midwest states of Ohio and Michigan. The acquisition provides Cleveland-Cliffs with access to prime scrap, making its steelmaking process far more environmentally friendly and producing higher-quality steel grades. In addition, by buying back scrap directly from its steel clients,…