NEW YORK (TheStreet) -- Shares of ArcelorMittal (MT) - Get Report are higher by 4.66% to $4.94 in mid-morning trading Tuesday after it was announced that the steel and mining company has a deal with Cliffs Natural Resources (CLF) through 2026 for tailor made iron ore pellets.
The deal replaces two existing agreements expiring in December 2016 and next January as well as fill the entirety of ArcelorMittal's pellet purchase requirements from previous contracts.
"We arrived at a mutually beneficial agreement, as both companies recognize the importance of bringing sustainable value to our respective businesses," Cliffs' CEO Lourenco Goncalves said in a statement announcing the deal.
Cliffs stock surged following the deal as the agreement "removes any remaining uncertainty about Cliffs, and supports our conviction in the bright future of our company, its employees, its shareholders, and all other stakeholders, including the communities in which we operate," the CEO continued.
Separately, TheStreet Ratings has set a "sell" rating and a score of D on ArcelorMittal stock. This is driven by some concerns, which TheStreet Ratings believes should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks it covers.
The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself.
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: MT