Deals
Top U.S. Iron Ore Miner’s Shares Plunge After $1.1 Billion Deal
- Cliffs loses $271 million of market value after AK Steel deal
- Cliffs CEO Lourenco Goncalves to lead combined company
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Cleveland-Cliffs Inc. shares headed for their steepest decline in three months after agreeing to buy AK Steel Holding Corp. for $1.1 billion in the biggest takeover of a U.S. steelmaker since Trump tariffs were imposed.
Cliffs shares tumbled 12%, wiping over $271 million from the market value of the top U.S. iron ore miner. The deal is “expensive” because it values AK Steel at 8.5 times next year’s estimated earnings before interest, taxes, depreciation and amortization, higher than its peers, according to David Gagliano, an analyst at BMO Capital Markets.