U.S based largest producer of iron ore pellets Cleveland- Cliffs Inc. (CLIF) announced that it has agreed to buy U.S assets of world’s largest steel manufacturer ArcelorMittal SA (AMS: MT) in a deal worth $1.4 billion.
ArcelorMittal has been engaging in a realignment to consolidate and diversify its business with an aim of making it less vulnerable to economic shocks.
Last year the steel maker announced that it was looking into ways to offload assets worth $2 billion and trim its debt portfolio significantly by 2021. As the year was winding up the company made a deal to sell 50% of its shipping business.
Additionally it also sold its entire stake in Brazil based steel manufacturer Gerdau.
U.S business for ArcelorMittal has 25 facilities with around 18,000 employees who work in them. The U.S assets for the company include steel facilities, finishing operations and mines.