Cliffs is now officially back on the acquisition bandwagon since the Great GFC collapse.
Come and make an offer for GWR, some might just be tempted.
Cliffs Natural Resources Inc. (NYSE: CLF) (Paris: CLF) today announced that it plans to exercise its right of first refusal and acquire U.S. Steel Canada's 44.6% interest and ArcelorMittal Dofasco's 28.6% interest in the Wabush Mines joint venture.
On Oct. 9, Consolidated Thompson Iron Mines Ltd. (TSX Venture: CLM) announced an agreement with Wabush Mines' other two joint venture partners, U.S. Steel Canada (44.6%) and ArcelorMittal Dofasco (28.6%), to acquire their interests for approximately $88 million in cash. Under the terms of the Wabush Mines partnership, Cliffs has a right of first refusal to acquire each of U.S. Steel Canada's and ArcelorMittal Dofasco's interest. By exercising its right of first refusal, Cliffs is entitled to receive the same terms and conditions contained in the agreement with Consolidated Thompson and thus increase its ownership stake of Wabush Mines to 100%. With Wabush Mines' 5.5 million tons of rated capacity, acquisition of the 73.2% will increase Cliffs' North American Iron Ore rated equity production capacity by approximately 4.0 million tons.
GWR Price at posting:
35.3¢ Sentiment: Buy Disclosure: Held
