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RAIL EMPLOYMENT & NOTICES



Rail News Home M&A

11/9/2020



Rail News: M&A

Cleveland-Cliffs to acquire six short lines


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Cleveland-Cliffs Inc. last week notified the Surface Transportation Board (STB) that the mining company intends to acquire control of six short lines owned by ArcelorMittal USA LLC.

The short lines are Brandywine Valley Railroad Co., Steelton & Highspire Railroad Co., Lake Michigan & Indiana Railroad Co., Upper Merion & Plymouth Railroad Co., Cleveland Works Railway Inc. and South Chicago & Indiana Harbor Railway Co.

The acquisition is part of Cleveland-Cliffs' recently announced agreement to purchase all of ArcelorMittal USA's assets for $1.4 billion. Once the sale is closed, Cleveland-Cliffs will become the largest flat-rolled steel producer in North America, with combined shipments of 17 million net tons in 2019, company officials said in a Sept. 28 press release. The company will also be the largest iron ore pellet producer in North America, with 28 million long tons of annual capacity.

Currently, Cleveland-Cliffs owns one short line — the Lake Superior & Ishpeming Railroad — which operates in Michigan, according to the STB notice.



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