Cleveland-Cliffs Doubles Down on Steel with $2.5B Acquisition, Expects $120M in Annual Savings
Portfolio Pulse from Lekha Gupta
Cleveland-Cliffs Inc. (NYSE:CLF) is acquiring Stelco Holdings Inc. (OTC:STZHF) for $2.5 billion, expecting $120 million in annual savings. The deal is anticipated to boost CLF's EPS for 2024 and 2025. CLF shares are down 2.41% premarket. Investors can gain exposure via SPDR S&P Metals & Mining ETF (NYSE:XME) and First Trust Materials AlphaDEX Fund (NYSE:FXZ).
July 15, 2024 | 12:38 pm
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Cleveland-Cliffs Inc. (NYSE:CLF) is acquiring Stelco Holdings Inc. for $2.5 billion, expecting $120 million in annual savings. The deal is anticipated to boost CLF's EPS for 2024 and 2025. CLF shares are down 2.41% premarket.
The acquisition is expected to provide significant cost savings and boost earnings per share for the next two years. However, the immediate market reaction is negative, with shares down 2.41% premarket.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Investors can gain exposure to Cleveland-Cliffs Inc. (NYSE:CLF) via First Trust Materials AlphaDEX Fund (NYSE:FXZ). The ETF may be impacted by CLF's acquisition of Stelco Holdings Inc.
As CLF is a component of FXZ, the acquisition news and its impact on CLF's stock price will likely affect the ETF's performance.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
Investors can gain exposure to Cleveland-Cliffs Inc. (NYSE:CLF) via SPDR S&P Metals & Mining ETF (NYSE:XME). The ETF may be impacted by CLF's acquisition of Stelco Holdings Inc.
As CLF is a component of XME, the acquisition news and its impact on CLF's stock price will likely affect the ETF's performance.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50