Print |
E-mail to a friend
BUSINESS
Cleveland-Cliffs to buy Alpha for nearly $10B
COLUMBUS, Ohio (AP) -- The buying spree by Cleveland-Cliffs continued Wednesday with a nearly $10 billion acquisition of Alpha Natural Resources, broadening the one-time Midwest company's international reach as well as its exposure to a global steel industry clamoring to fuel its mills.
Its biggest acquisition to date, the cash-and stock deal will create a company with the largest reserves of iron ore and metallurgical coal in the U.S. The company will be named Cliffs Natural Resources, and own nine iron ore facilities and more than 60 coal mines in North and South America and Australia.
The boards of both Cleveland-based Cleveland-Cliffs and Abingdon, Va.-based Alpha Natural Resources Inc. approved the deal, in which Alpha shareholders will receive 0.95 Cleveland-Cliffs shares ($105.89 based on the stock's Tuesday closing price) and $22.23 in cash for each share held.
