ArcelorMittal to sell some of its shares in Cleveland-Cliffs

ArcelorMittal North America Holdings LLC, a wholly owned subsidiary of Luxembourg-based ArcelorMittal S.A., says it has agreed to sell 40 million shares of United States-based Cleveland-Cliffs common stock “through a fully underwritten public market offering.” The total represents about half of the Cleveland-Cliffs common shares held by ArcelorMittal.

The divestment will help the steelmaker reap “additional proceeds from the transaction with Cleveland-Cliffs   [finalized] on Dec. 9, 2020,” involving the sale of three basic oxygen furnace (BOF) and two electric arc furnace (EAF) steelmaking complexes in the U.S. from ArcelorMittal to Cleveland-Cliffs.

The proceeds from the sale of Cleveland-Cliffs common shares will be used for a new ArcelorMittal share buyback program, with details and conditions of the buyback to be announced in mid-February, ArcelorMittal says.

Following the sale of 40 million Cleveland-Cliffs common shares, ArcelorMittal North America Holdings LLC will continue to hold approximately 38 million common shares in addition to shares of nonvoting preferred stock redeemable at Cleveland-Cliffs’ option, adding up to an equivalent value of approximately 58 million common shares.

A registration statement relating to the common shares being sold in the offering has been filed with the Securities and Exchange Commission (SEC), according to ArcelorMittal.