This Is Where 73% of Cleveland-Cliffs' Extra Cash Went in 2022
Cleveland-Cliffs (NYSE: CLF) has transformed its business in a very short period of time. To some extent, it was working to protect its customer base, but the end result is that this one-time iron ore miner is now an integrated steelmaker. With the transformation over, management has been working to fix the balance sheet risks left behind.
In late 2019 Cleveland-Cliffs agreed to buy AK Steel for roughly $3 billion, including debt. At the time, AK Steel was struggling through a steel industry downturn, and it looked very much like Cleveland-Cliffs was stepping in to save a key customer. Less than a year later Cleveland-Cliffs agreed to buy the U.S. steel operations of ArcelorMittal in a roughly $3.3 billion deal. Although this, too, seemed like a supplier saving a customer, the end result is that Cleveland-Cliffs very quickly became one of the largest steelmakers in North America.
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Source Fool.com
