Cleveland-Cliffs is taking over a troubled Ohio steel producer.
The stock swap for AK Steel is worth a little more than a billion dollars. That’s less than half of what AK Steel stock was valued at three years ago.
The company has been hurt by depressed steel prices, which have remained low despite tariffs placed by the Trump administration on some imported steel.
The company reported a 96 percent drop in net income for the third quarter, and is in the process of closing a mill in Kentucky.
Cleveland-Cliffs Chairman, President and CEO Lourenco Goncalves will remain at the helm of the expanded company.
In a conference call this morning, Goncalves said the purchase would help assure a destination for ore from Cleveland-Cliffs mines.
Read Cleveland-Cliffs press release here.
Read AK Steel’s press release here.