Cleveland-Cliffs Inc., the country's largest producer of iron ore pellets, will be the new owner of AK Steel.
The merger, which is expected to close in the first half of 2020, was announced Tuesday morning by Cleveland-Cliffs. The company will acquire all issued and outstanding shares of AK Steel stock.
Shares of AK Steel rose more than 3 percent in early trading this morning, while Cleveland-Cliffs stock fell sharply, losing around 14 percent.
A news release said the new company will produce “high-value iron ore and steel solutions to customers primarily across North America.”
The CEOs of both companies said the merger will allow the manufacture of products each could not have produced separately.
AK Steel will become a subsidiary of Cleveland-Cliffs and will retain its branding and corporate identity, the news release said.
Cleveland-Cliffs will “maintain a significant presence” at AK Steel's corporate headquarters in West Chester, Ohio, and the two boards of directors will combine.
More information on the impact of the expected merger will be included in the Wednesday issue of the Butler Eagle.