Cleveland-Cliffs Inc (NYSE: CLF) announced Monday it has signed an agreement to purchase the United States unit of ArcelorMittal S.A. (NYSE: MT).
What Happened: The $1.4 billion transaction would be made on a cash-free and debt-free basis with 78.2 million shares of the Cleveland-Cliffs common stock — worth about $460 million as of Friday’s closing. Additionally, it would involve the transfer of non-voting preferred Cleveland-Cliffs stock worth approximately $373 million and $505 million in cash, Cleveland-Cliffs said in a statement.
The company expects cost savings to the tune of $150 million annually after the transaction is completed.
Goldman Sachs Group Inc’s (NYSE: GS) investment arm is acting as financial advisor to Cleveland-Cliffs, while BofA Securities, the investment banking arm of Bank of America Corporation (NYSE: BAC), to ArcelorMittal.
The deal is expected to close in the fourth quarter of 2020, subject to regulatory approval.
Why It Matters: Post-transaction, Cleveland-Cliff would become the largest flat-rolled steel producer in North America with combined shipments of 17 million net tons in 2019, according to the company.
ArcelorMittal was looking to offload $2 billion of assets by the middle of 2021 to reduce its debt and agreed to sell a 50% stake in its shipping business in December, Reuters reported.
The Luxembourg-based steel maker has also sold its stake in Brazillian steelmaker Gerdau S.A. (NYSE: GGB).
Price Action: Cleveland-Cliffs shares closed nearly 3% higher at $5.88 on Friday. On the same day, ArcelorMittal shares closed almost 0.3% lower at $12.09 and fell almost 1.5% in the after-hours session.
isnt it priced in, all i'm seeing is a lot of CLF stock will get dumped in the upcoming weeks/months. Those shares are already on the mkt or they just diluted the existing float?
Levi Perry
>Dow implied open: +215.04
Evan Cook
>Story that Trump has done nothing illegal
THIS IS BULLSH
Carter Reyes
Please tell me if this is a good idea: Tomorrow my plan is to go all in with 75 QQQ and 50 TQQQ. I intend to keep an eye on them, but my hope is that I will be able to just hold. My general strategy would be that if the market starts looking shaky I might pull the TQQQ (or part of it) and only if it starts going severely pear shaped should I sell the QQQ. I would like to know if this sounds reasonable, and also where you guys would put trailing stop losses (which should also be a good guide for when I might want to pull out)? My thought was something like 8% on the QQQ and 12% on TQQQ.
ok cool but these guys are 20-30 bucks a pop wheres my poorfag stonks
Lincoln Williams
This is a short squeeze right? Should I hold onto my shorts?
Michael Phillips
Delusional bobos btfo.
Can't wait for Tuesday to buy Palantir!
Isaiah Edwards
whats the chink pump moon ticker for tomorrow? i only made $140 on SUNW last week and missed out on SPI, i want to dump like $2k into this weeks chink scam
smart fags how high do you think GUSH will go once this is over. I'm tempted to cut my losses and dump.
Daniel Barnes
Sell, then buy back, kind of thing? Is it still better (for taxes) if I can to hold at least a year, or on what timeframe do you recommend I take profits?
Justin Rogers
what should i set my limit buy at per share for GME at Open?
