Cliffs step closer to Alpha buy

AFTER 117 years Cleveland-Cliffs this week officially changed its name to Cliffs Natural Resources as it moves on its acquisition of Alpha Natural Resources.

Donna Schmidt

The acquisition is still awaiting final approvals and shareholder voting, which is expected by the end of this year.

The US Federal Trade Commission said in late August it would approve Cliffs’ purchase and permitted an early ending to the waiting period required under the Hart-Scott-Rodino Act, which reviews deals for potential antitrust law violations.

The deal to acquire the master limited partnership was announced earlier this year with a price tag of $US10 billion.

The combined company will hold a portfolio including nine iron ore mines and more than 60 coal mines in North America, South America and Australia.

The two companies estimate Cliffs Natural Resources will have a combined pro forma revenue for 2008 of approximately $6.5 billion. Revenue for 2009 could reach $10 billion.

At the deal’s completion, Alpha stockholders will own approximately 40% of the combined company and Cleveland-Cliffs shareholders will own about 60%.

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