He said today marks the first day in “a great chapter” in the company’s history. The company was founded in 1847.
Aditya Mittal, president of ArcelorMittal, said the deal presents “a unique opportunity to create a competitive and resilient company with considerable synergy potential.”
The company purchased AK Steel in March for $1.1 billion.
“Steelmaking is a business where production volume, operational diversification, dilution of fixed costs, and technical expertise matter above all else,” Goncalves said in a statement. “This transaction achieves all of these.”
He said more than the price of its product, Cleveland-Cliff relies on quality and the ability to deliver on time.
Under the deal, which is expected to close during the fourth quarter, Cleveland-Cliffs will pay nearly $900 million in stock and about $500 million in cash, Goncalves said.
Although the acquisition won’t include any debt from the U.S. operations of ArcelorMittal, Cleveland-Cliffs will assume pension and other liabilities, bringing the total value of the deal to about $3.3 billion.
Shares of Cleveland-Cliffs and ArcelorMittal rose by around 10 percent in the first 30 minutes of trading on Monday.