Cleveland-Cliffs has agreed to acquire Hamilton-based steel manufacturer Stelco for approximately C$3.4 billion in cash and shares, the companies announced Monday.

The deal has large real estate aspects. Stelco’s headquarters will remain in Hamilton and the Canadian operations will retain the Stelco brand.

If all goes according to plan, Cleveland-based Cliffs will pay C$70 per share, consisting of C$60 per share in cash and 0.454 common shares for each Stelco share owned, representing an 87% premium to Stelco’s C$37.36 closing share price on July 12. Upon completion of the transaction, Cliffs shareholders will own approximately 95% and Stelco shareholders will own the rest of the combined company.

Stelco owns and operates two major steelmaking plants in Hamilton, where the company is headquartered, and Nanticoke, which will remain in operations, Ont. The facilities are slated to remain in their locations and receive at least C$60 million worth of capital investments over the next three years, while steel production is also slated to increase.

Cliffs will also maintain Stelco’s 40% equity interest, and master lease, in Hamilton’s Tim Hortons Field. The stadium serves as the home of the Hamilton Tiger-Cats of the Canadian Football League and Forge FC of the Canadian Professional Soccer League.