Cleveland-Cliffs Inc. (NYSE:CLF) Announces Overwhelming Shareholder Approval for Stelco Acquisition

September 16, 2024 10:15 PM PDT | By Team Kalkine Media

Cleveland-Cliffs Inc. (NYSE:CLF) Announces Overwhelming Shareholder Approval for Stelco Acquisition — Image source: shutterstock

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Cleveland-Cliffs Inc. (NYSE:CLF) has announced a significant milestone in its strategic expansion plans with the successful approval of its indirect acquisition of Stelco Holdings Inc(TSX:STLC)At a special meeting held today, Stelco's shareholders gave an overwhelming nod to the Arrangement Resolution, which is a crucial step in Cliffs' acquisition strategyThe resolution garnered an impressive 99.97% of the total votes cast, reflecting robust support from the shareholder base.

The meeting, known as the Stelco Meeting, underscored the shareholders' endorsement of the acquisition, highlighting their confidence in the future direction of both companiesThis favorable vote marks a pivotal moment for Cleveland-Cliffs as it advances towards completing the transaction, which is anticipated to finalize in the fourth quarter of 2024.

Upon closing, Stelco is set to become a wholly-owned subsidiary of Cleveland-Cliffs, a move that aligns with Cliffs' strategic goal of enhancing its position as a leading North American steel producerThe completion of this transaction is contingent upon fulfilling or waiving certain conditions outlined in the arrangement agreement, but today's shareholder approval significantly propels the deal forward.

Lourenco Goncalves, Chairman of the Board, President, and CEO of Cleveland-Cliffs, expressed his enthusiasm about the overwhelming support for the acquisitionIn a statement, Goncalves remarked, "The overwhelming approval from Stelco shareholders confirms the strong support of this transaction, and we look forward to closing this transaction in the fourth quarter of 2024Together with Stelco and the USW in Canada, Cliffs will become an even stronger and better North America-based steel producer, which will benefit both Canada and the United States."

The merger represents a strategic consolidation in the steel industry, poised to enhance Cliffs' operational capabilities and market reachStelco's integration into Cliffs' portfolio is expected to bolster the company's production capacity and operational efficiencies, positioning Cliffs as a formidable player in the North American steel sectorThe acquisition also underscores Cliffs' commitment to expanding its footprint and reinforcing its competitive edge in the industry.

The anticipated merger holds significant implications for the steel market, potentially influencing supply dynamics and market competitionAs both companies move forward with the transaction, stakeholders and industry observers will be keenly watching how this integration unfolds and the impact it will have on the broader steel industry landscape.

In summary, Cleveland-Cliffs' successful acquisition of Stelco, as validated by today's overwhelming shareholder vote, marks a strategic advancement for the companyWith the transaction set to close by the end of the year, Cliffs is poised to enhance its position in the market and drive growth through this pivotal acquisition.

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