Cleveland-Cliffs, Inc., an Ohio-based mining and natural resources company, announced that it has reached an agreement to acquire the Detroit-based Ferrous Processing & Trading Company (FPT), for a total enterprise value of around US$775 million. The acquisition was expected to be completed in the fourth quarter of this year.

FPT accounts for roughly 15% of the domestic commercial prime scrap market. The current annual processed volume of scrap is about 3 million tons, of which approximately 50% are prime grades.

Lourenco Goncalves, CEO of Cleveland-Cliffs, said that this acquisition will improve their ability to purchase back prime scrap from customers directly.