Cliffs Natural Resources Inc. (CLF)

In this paper we examine the dynamics of cross-listing, particularly US companies that cross-list in the NYSE Euronext equity-based exchange. We look at the number of US firms cross-listed in this exchange and then study one of these companies specifically, Cliffs Natural Resources, Inc. In addition, we explore the importance of cross-listing in NYSE Euronext as well as: the benefits, costs and requirements of fast path cross-listing and the trading volumes of the shares transacted in the exchange.
The foundation of our case study is based on Cliffs Natural Resources Inc. (CLF), an international mining and natural resources company headquartered in Cleveland, Ohio. Formerly known as Cleveland-Cliffs Inc., the company was founded in 1847 (Yahoo Finance). CLF is North America’s larger supplier of iron ore. The Company produces iron ore pellets and metallurgical coal. CLF operates in four segments: U.S. Iron Ore, Eastern Canadian Iron Ore, North American Coal and Asia Pacific Iron Ore. In the United States, it operates five iron ore mines in Michigan and Minnesota, five metallurgical coal mines located in West Virginia and Alabama and one thermal coal mine located in West Virginia. It also operates two iron ore mines in Eastern Canada that primarily provide iron ore to the seaborne market for Asian steel producers (NYSE Euronext).
As part of their growth strategy and due to its largely increased presence in the international market, CLF decided to “take advantage” of cross-border listing. On March 11, 2009 the company announced its intend to list its common shares on NYSE Euronext Paris. On March 31 that same year, European regulators approved the listing and the company started trading its shares in April 6, 2009. The company’s objective was to increase exposure for common shares, gain global recognition, promote additional