⁍ ArcelorMittal is exploring a deal to merge its U.S. operations with Cleveland-Cliffs, people familiar with the matter said.

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⁍ The combination would signal a new push among steelmakers to consolidate and diversify their business.

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⁍ It would come after Cleveland-Cliffs acquired AK Steel, a U.S. maker of flat-rolled carbon steels, for $3 billion, including debt, last March.

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– The world’s largest steelmaker is exploring a deal to merge its US operations with Cleveland-Cliffs, the largest US producer of iron ore pellets, sources tell Reuters. The combination would signal a new push among steelmakers to consolidate and diversify their business, making it less vulnerable to swings in demand. It would come after Cleveland-Cliffs acquired AK Steel, a US maker of flat-rolled carbon steels, including stainless steel, for $3 billion, including debt, last March. The latest deal could result in the merger of US assets of Luxembourg-based ArcelorMittal that are worth between $2 billion and $3 billion with Cleveland-Cliffs, one of the sources said. It would be transformative for Cleveland-Cliffs, which has a market value of $2.3 billion and had total long-term debt as of the end of June of $4.5 billion. If, however, the talks prove successful, a deal could be announced in the coming days, one of the sources said. ArcelorMittal and Cleveland-Cliffs did not respond to requests for comment.