Cleveland-Cliffs, the Cleveland-based iron ore mining company, signed a deal to acquire six steelmaking factories, eight finishing facilities, two iron ore mining and pelletizing operations, and three coal and coke making factories in exchange for an upfront cash payment of close to $505 million and Cleveland-Cliffs stock worth about $873 million.

The payments and stock will go to Luxembourg-based ArcelorMittal in exchange for their facilities as outlined above. The deal is expected to close at the end of this year. When the deal is finalized Cleveland-Cliffs will be the largest producer of flat-rolled steel and iron ore pellets in all North America, according to the company.

“The acquisition of ArcelorMittal USA amplifies our position in the discerning automotive steel marketplace, and further improves our position in important U.S. markets such as construction, appliances, infrastructure, machinery and equipment,” said CEO Lourenco Goncalves.

In 2018 and 2019 ArcelorMittal USA had revenue of over $10 billion on average. Cleveland-Cliffs has an average of $2 billion in revenue per year. The companies said that the merger will save about $150 million per year.

This acquisition was the second for Cleveland-Cliffs worth over $1 billion this year. At the end of 2019, the company paid $1.1 billion for AK Steel Corp.