NEW YORK ( TheStreet) -- Shares of Cliffs Natural Resources (CLF - Get Report) edged lower in after-hours action on Tuesday after the Cleveland-based mining company agreed to acquire Canada's Consolidated Thompson Iron Mines Limited for $4.95 billion.
The deal values shares of Consolidated Thompson, a Montreal-based iron ore miner that trades on the Toronto Stock Exchange under the symbol "CLM" at C$17.25 each, or $17.42 each. Consolidated Thompson's stock closed Tuesday's regular trading session at C$13.38.
Cliffs Natural Resources' stock was last quoted at $83.51, down 1.7%, on volume of around 123,000, according to Nasdaq.com. The shares were up more than 50% in 2010, and analysts remain bullish with eight of 11 analysts covering the stock at either strong buy (3) or buy (5), according to Nasdaq.com.
In its press release, Cliffs Natural said it has sufficient committed financing and available liquidity to complete the cash deal, and that it expects the transaction to be "modestly accretive" to its earnings per share and cash flow in both 2011 and 2012. The company expects to complete the deal early in the second calendar quarter of 2011.