(RTTNews) - Cleveland-Cliffs Inc. (CLF) has agreed to acquire all of the issued and outstanding shares of AK Steel Holding Corp. (AKS). AK Steel shareholders will receive 0.40 shares of Cliffs common stock for each outstanding share of AK Steel. The fixed exchange ratio implies a consideration of $3.36 per share of AK Steel common stock. The deal implies an aggregate consideration to AK Steel shareholders of approximately $1.1 billion, or a total enterprise value of approximately $3.0 billion for AK Steel.
Upon completion, Cliffs shareholders will own approximately 68% and AK Steel shareholders will own approximately 32% of the combined company. Lourenco Goncalves, CEO of Cliffs, will lead the new company.
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