Cliffs Wins Approval for Consolidated Thompson Acquisition
04/14/2011 - The Minister of Industry has approved Cliffs Natural Resources’ proposed acquisition of Consolidated Thompson Iron Mines Limited, under the Investment Canada Act, on the basis that the transaction is likely to be a net benefit to Canada.
The Minister of Industry has approved Cliffs Natural Resources’ proposed acquisition of Consolidated Thompson Iron Mines Limited, under the Investment Canada Act, on the basis that the transaction is likely to be a net benefit to Canada.
Cliffs announced in January that it had entered into a definitive arrangement agreement to acquire all of Consolidated Thompson's common shares in an all-cash transaction valued at approximately $4.9 billion Canadian dollars (including net debt), or C$17.25 per share. Upon completion of the acquisition, Consolidated Thompson is to become an indirect wholly-owned subsidiary of Cliffs Natural Resources and be rebranded under the Cliffs name. It is anticipated that Consolidated Thompson will become part of Cliffs' North American Iron Ore business unit and will be led by Cliffs' executive leadership team.
Cliffs indicated the Chinese Ministry of Commerce's (MOFCOM) approval is required to proceed with the closing of the acquisition.
Subject to MOFCOM's approval and certain other closing conditions, Cliffs anticipates closing the acquisition early in the second quarter of 2011.
Cliffs Natural Resources Inc., an international mining and natural resources company, is a major global iron ore producer and a significant producer of high- and low-volatile metallurgical coal. Cliffs' strategy is to continually achieve greater scale and diversification in the mining industry through a focus on serving the world's largest and fastest growing steel markets.
The company is organized through a global commercial group responsible for sales and delivery of Cliffs products and a global operations group responsible for the production of the minerals the company markets. Cliffs operates iron ore and coal mines in North America and two iron ore mining complexes in Western Australia. The company also has a 45% economic interest in a coking and thermal coal mine in Queensland, Australia. In addition, Cliffs has a major chromite project, in the pre-feasibility stage of development, located in Ont., Canada.
