NEW YORK (TheStreet) -- Cliffs Natural Resources (CLF), the iron ore miner, gladdened investors with its plan to acquire a Canadian rival for nearly $5 billion, expanding its mining assets amid a boom in the market for industrial raw materials.Cliffs announced the all-cash takeover of Consolidated Thompson after the market close Tuesday. Wednesday morning, shares of the Cleveland-based miner bounced sharply, touching $89.92 at one point shortly after the open, a new 52-week high. The stock was trading recently at $87.69, up 3.2%, on heavy volume.
Cliff noted that its strategy now is to get its hands into that profitable Asian trade -- or, as the company worded it, "to build scale by owning expandable and exportable steelmaking raw material assets serving international markets." Parr expects Consolidated to add $1 to $1.20 per share to Cliffs' bottom line for the full year 2011. Wall Street on average is calling for Cliffs to earn $9.67 a share in 2011. Anthony Rizutto, who covers metals and mining stocks for the investment firm Dahlman Rose in New York, was also bullish on the deal. He said Consolidated could add as much as $1.50 to Cliffs' EPS in 2012. -- Written by Scott Eden in New York >To contact the writer of this article, click here: Scott Eden. >To follow the writer on Twitter, go to http://twitter.com/ScottEden. >To submit a news tip, send an email to: email@example.com.