Reportedly, ArcelorMittal SA, the world's largest steelmaker, is likely to merge its US operations with Cleveland-Cliffs Inc, the largest US producer of iron ore pellets.

Experts say that if the deal is concluded, it will breathe new life in this struggling industry. The combination will lead to a new push among steelmakers to consolidate and diversify their business. As a result, it will be less vulnerable to swings in demand.

If the parties reach an agreement, ArcelorMittal will unite its US assets worth from $2 to $3 billion with Cleveland-Cliffs' assets. In March, Cleveland-Cliffs acquired AK Steel, a US maker of flat-rolled carbon steels, for $3 billion, including debt. Currently, the market value of Cleveland-Cliffs amounts to $2.3 billion and the total long-term debt as of the end of June comes in at $4.5 billion.

There is no certainty that the negotiations will end successfully. However, if the talks turn out to be fruitful, a deal could be announced in the coming days. ArcelorMittal and Cleveland-Cliffs officials did not make comments on the matter.