Cleveland-Cliffs Inc.

The acquired assets also include four integrated blast furnace facilities, eight steel finishing plants, 2.8 million tons of iron ore capacity, a metallurgical coal mine, and a coke making plant. Somewhat offsetting the benefits from this transaction is ArcelorMittal USA's production of more commoditized products geared toward the energy, mining, distribution, and converter end markets. We expect this to reduce Cliff's EBITDA margins by 300 basis points (bps)-400 bps to about 6%-7%, at least until it realizes its targeted synergies and shift its sales mix back toward more value-added products. In addition to the proposed hybrid security, our forecast for roughly $9.3 billion of debt in 2021 includes over $3 billion of adjustments for debt-like obligations, including pension and post-retirement

...Cliffs' acquisition of ArcelorMittal USA will strengthen its business risk profile if successfully integrated, though acquisitions of this size always carry risks, including the potential for operating disruptions and challenges in achieving targeted synergies. Cleveland-Cliffs Inc. has completed the acquisition of its larger competitor steelmaker ArcelorMittal USA LLC. The combination of the two companies will more than triple Cliffs' revenue base, to over $16.5 billion-$17.0 billion in 2021, and make it the largest flat-rolled steel producer in North America. We believe this combination will improve the company's long-term competitiveness by bringing considerable scale to its operations and adding two electric arc furnace production facilities with variable and flexible operating costs. Cliffs will also increase its exposure to the automotive end market, which we expect will improve over the next year or two. The acquired assets also include four integrated blast furnace facilities, eight...

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