Robert England’s Post

Cleveland-Cliffs Acquires STELCO - The Steel Company of Canada for C$3.85 Billion - Cleveland-Cliffs Inc. has reached an agreement to acquire Canadian steelmaker Stelco Holdings Inc. for approximately C$3.85 billion ($2.8 billion), marking its first significant acquisition since its unsuccessful bid for United States Steel Corp. last year. This transaction offers an 87% premium over Stelco's last closing price, underscoring its substantial value proposition. - Under the terms of the deal, Stelco shareholders will receive a mix of cash and shares valued at around C$70 per share. This acquisition aligns with Cliffs CEO Lourenco Goncalves' aggressive expansion strategy, which has transformed the company from an iron ore miner to a leading U.S. steel producer and the top automotive steel supplier in the country. Goncalves' bold moves, including the failed attempt to acquire US Steel and his outspoken criticism of its subsequent sale to Nippon Steel Corporation, highlight his determination to grow Cliffs' market presence. - Stelco operates two significant facilities in Ontario, producing approximately 2.6 million net tons of flat-rolled steel annually. This acquisition will not only expand Cliffs' manufacturing footprint but also double its exposure to the flat-rolled spot market, enhancing its product offerings and market reach. - Historically, Stelco, formerly known as the Steel Company of Canada, has a legacy spanning over 110 years. Despite facing bankruptcy in the mid-2000s and being acquired and later abandoned by US Steel, Stelco was revived by CEO Alan Kestenbaum in 2017, who restored its operations and name. This acquisition by Cliffs represents a new chapter in Stelco's storied history. - The transaction has garnered support from key stakeholders, including Stelco's largest investors, Fairfax Financial Holdings Limited, as well as the United Steelworkers (USW). - The deal is slated for completion in the fourth quarter of 2024, contingent on Stelco shareholder approval, regulatory clearances, and customary closing conditions. Wells Fargo, J.P. Morgan, and Moelis & Company are providing financial advisory services to Cliffs. Stelco is advised by BMO and legally represented by McCarthy Tétrault and A&O Shearman. RBC Capital Markets and Stikeman Elliott LLP are advising Stelco’s special committee. #clevelandcliffs #stelco #steelindustry #mergersandacquisitions #privateequity #wellsfargo #jpmorgan #moelis #bmocapitalmarkets #rbccapitalmarkets

What's better than Prime Days? A country closing sale... ---------- "The second biggest steelmaker in the United States, announced its intentions on Monday to buy Hamilton-based Stelco. Cleveland-Cliffs is offering $60 a share and 0.454 of its stock for each Stelco share. The buyout is worth $70 a share, an 89-per-cent premium on Stelco’s $36.97 close on Friday and puts an enterprise value on the company of $3.4-billion. The deal will be subject to an antitrust reviews in North America, and both a national security and net benefit review by the Canadian federal government." .... "The steel sector, however, is seen as a strategic industry for the West. In the United States, the recent proposed acquisition of United States Steel Corp. (U.S. Steel) by Japan’s Nippon Steel fired up President Joe Biden. He vowed to block the acquisition, saying that it was important that US Steel remain domestically owned. Stelco is the biggest Canadian steelmaker and it operates the Lake Erie Works steel plant and Hamilton Works, both in Ontario. The company is a major supplier to the automotive sector." https://lnkd.in/gVPm9YjP

𝗖𝗹𝗶𝗳𝗳𝘀, 𝗨𝗦 𝗦𝘁𝗲𝗲𝗹 𝘁𝗿𝗮𝗱𝗲 𝗰𝗼𝗺𝗺𝗲𝗻𝘁𝘀 𝗼𝗻 𝗺𝗲𝗿𝗴𝗲𝗿 𝗽𝗿𝗼𝗽𝗼𝘀𝗮𝗹 by Brian Taylor; Recycling Today A Cleveland-Cliffs “reminder” that U.S. Steel is finding approval for its proposed #acquisition difficult provokes a reply from the U.S. Steel board. A May 21 statement from steelmaker Cleveland-Cliffs and its CEO referring to the proposed sale of Pittsburgh-based United States Steel Corporation. as “doomed” has provoked a response from U.S. Steel. This Tuesday, Cleveland-based #USSteel rival #Cliffs issued a statement referring to the Pittsburgh firm’s “doomed attempt to sell its company to a foreign buyer without union support.” Last December, U.S. Steel announced it had accepted the bid of Japan-based Nippon Steel Corporation. “It is unfortunate that the U.S. Steel board of directors is just now realizing that it announced an uncloseable deal and is trying to blame Cliffs for its terrible decision making,” Lourenco Goncalves, board chair, president and CEO of Cleveland-Cliffs says as part of that firm’s statement. “From our first offer to acquire U.S. Steel to our final (now expired) offer on Dec. 15, 2023, we stressed the necessity of keeping U.S. Steel American-owned and having the full support of the union,” Goncalves adds, referring to support Cliffs received from the United Steelworkers (USW). In the multiparagraph statement, Goncalves also refers to #opposition to the #NipponSteel acquisition by current U.S. President Joe Biden. (His likely November opponent Republican nominee Donald Trump also has voiced opposition to the deal.) This Tuesday, the U.S. Steel board released its own multiparagraph statement labeling the Cliffs statement as being part of a “a long-running misinformation campaign.” The two sparring companies, between them, operate every blast furnace/basic oxygen furnace (#BF / #BOF) #steelmill in the U.S. Cliffs also owns the Ferrous Processing & Trading network of #scrapyards, while U.S. Steel owns the recycled-content Big River Steel electric arc furnace complex in Arkansas. The full article is here: https://lnkd.in/dmEu6PnJ

🛳️ In the news: TORM to spend $340m on eight second-hand MRs. TORM’s fleet size is set to reach 96 vessels on the sale of one MR and acquisition of eight second-hand tankers. The $340m purchase of the eight ships will be paid for in $228m in cash via bank financing, plus the issuance of around 2.65m shares, which may lead to a change in the final purchase price depending on Torm share price movements and vessel delivery dates. The eight new acquisitions were all built at Hyundai Motor Company (현대자동차) Mipo Dockyard in 2014-2015 and are due to be delivered in Q3 and Q4 2024; six are fitted with scrubbers. The sold vessel is a 2006-built MR which is due to be delivered to its new owners in Q3 2024 for $23.3m. “We are pleased to once more announce a partially share-based transaction to acquire vessels. Since 2021, TORM has utilised partially share-based transactions to expand the fleet, even before the product tankers market took off. This model highlights the strong trust the sellers have in our One TORM platform and their firm belief in market fundamentals,” says Jacob Meldgaard, Executive Director and CEO. The new acquisitions will join a fleet with a tight focus on energy efficiency and a goal to reach the IMO’s 2030 carbon intensity targets by 2025. Torm was just 0.4% off of that target at the end of 2023, it claimed. Torm raised its 2024 full-year guidance in its first quarter earnings report to an EBITDA of $800m - $1,050m. Its second quarter results are scheduled for release on August 15, 2024. 📰 Read the full story on Seatrade Maritime News: https://lnkd.in/ekC4FU8g #Shipping #Container #Trade #Maritime

Another day, another successful deal closed by Benchmark International! Discover how we helped Fredericksburg Machine & Steel, LLC and SRF, LLC reach a mutually beneficial agreement. This merger promises innovation and expanded services in the steel industry. Learn more about this impactful deal.

Vanchem sale approved by Bushveld shareholders Bushveld shareholders voted overwhelmingly in favor of selling the Vanchem vanadium operation in South Africa to Southern Point Resources (SPR). The vote was: 989,959,661 in favor, 52,500,899 against and 1,323,588 votes withheld. The sale is conditional on the approval of Orion and the South African Competition Tribunal which is expected at the end of July or early August. Struggling with cash flow and high-cost operations, Bushveld turned to SPR for a bailout last September. SPR agreed to provide $69.5- to 77.5-million in funding and then proceeded to be unable to cough up $12.5-million it agreed to pay for Bushveld shares by December 2023. On Jan. 22, SPR provided $2-million, not in cash, but in the form of a loan. By mid-February, Bushveld had received $6-million in the form of an interest-free loan. Finally, by mid-March, SPR had paid $12.5-million in the form of an interest-free loan. That money did not last long and by the end of April Bushveld had $2.22-million in cash. With few alternatives, Bushveld announced in early May that it would sell 100% of Vanchem to SPR for up to $40.6-million, with an initial consideration of $20.6-million and a deferred consideration of $15- to $20-million. The deal replaced its November 2023 agreement to sell 50% of Vanchem to SPR for $21.3-million. It is understandable that Bushveld shareholders would not be thrilled about selling all of Vanchem rather than a 50% stake, especially as Bushveld paid $53.5-million to acquire Vanchem in 2019. However, the alternative was going bust, which explains the lopsided vote, despite efforts by a small contingent to scuttle the deal. Bushveld received an initial advance from SPR of $3-million on May 3. SPR has agreed to advance a further $5-million on May 31 and a further $1-million on June 30, provided shareholders approved the Vanchem sale. Vanchem is one of two vanadium operations Bushveld owns; Vametco is the other. Vanchem’s 2023 production of vanadium chemicals, flake and FeV was 1,408 mt, 24% higher than in 2022 and was the highest annual production since Bushveld acquired Vanchem in 2019. Production cash cost at Vanchem averaged $27.90 per kg in 2023, 25% less than in 2022. In 2023, Vametco produced 2,306 mt of nitro vanadium, 15% less than in 2022. Average production cash cost was $25.50 per kg, 7.5% higher than in 2022 due to lower production volumes. Bushveld’s vanadium production fell 9% in the first quarter to 855 mt of V (357 mt from Vametco and 498 mt from Vanchem) compared to 943 mt in Q1 2023. Bushveld’s vanadium first-quarter 2024 sales fell 14% to 880 mt compared to 1,028 mt in Q1 2023. The weighted average production cash cost for Vanchem and Vametco was $28.40 per kg in Q1 2024 compared to $25.90 in the year-ago quarter.

U.S. Steel-Nippon Steel Merger: Arbitration Looms as Global Hurdles have Cleared https://lnkd.in/gViVSq42 #Steel #SteelNews #SteelIndustry #SteelIndustryNews #Metal #Metals #Economy #Aluminum #Steelmaking #MetalNews #Pricing #Decarbonization #USSteel #NipponSteel #Nippon #metalsindustry #mergersandacquisitions #labor #laborrelations #arbitration

How Consolidation in the Steel Industry is Shaping Steel Prices: An In-Depth Analysis https://lnkd.in/djWNei_h Consolidation within the steel industry has become a significant trend in recent years, with mergers and acquisitions reshaping the landscape. This consolidation has far-reaching implications for steel prices, market dynamics, and industry competition. In this article, we delve into how consolidation affects steel prices, examining the mechanisms behind these changes and their broader impact on the steel market. 1. Understanding Steel Industry Consolidation Consolidation in the steel industry refers to the process where larger steel companies acquire smaller ones or merge with other major players. This trend has accelerated due to several factors: Economic Pressures: Steel companies face economic pressures... Steel Price #steelprice #steelprices #steel_news #steelmarket #LME #HKEX #Metal #stock #stocks #steel

Another day, another successful deal closed by Benchmark International! Discover how we helped Fredericksburg Machine & Steel, LLC and SRF, LLC reach a mutually beneficial agreement. This merger promises innovation and expanded services in the steel industry. Learn more about this impactful commodities deal.