The second would be an acquisition of SXC by CLF. CLF – under the direction of its bull-in-a-China-shop CEO Laurenco Gonclaves – has been quite active in executing a vertical consolidation strategy. The purpose of the vertical consolidation spree is to reduce operating costs, which is vital for anyone participating in a highly competitive, price- taking, commodity industry. The combination of CLF with its former customers AK Steel and ArcelorMittal USA was all about eliminating the cost of the customers' take-or-pay contracts for CLF's iron ore. And more recently, CLF announced the acquisition of a scrap steel processor and distributor which should reduce the cost of CLF supplying its electric arc furnaces with prime scrap. By my math, CLF's annual take-or-pay contracts with SXC cost the company ~$150 million. A combination would eliminate that.