Steel Mills
OAO Severstal Announces Sale of Dearborn & Columbus Steel Mills
Written by John Packard
July 22, 2014
Severstal announced this morning that it has entered into a purchase agreement to sell Severstal Columbus and Severstal Dearborn steel mills to Steel Dynamics and AK Steel for $2.325 billion. Here is the press release:
July 21, 2014, Moscow – OAO Severstal (MICEX-RTS: CHMF; LSE: SVST), (‘Severstal’, the ‘Company’), one of the world’s leading vertically integrated steel and steel-related mining companies, announces it has entered into separate definitive transaction agreements to sell its Severstal Columbus, LLC and Severstal Dearborn, LLC subsidiaries, collectively known as Severstal North America, to Steel Dynamics, Inc. and AK Steel Corporation, respectively, for a total cash consideration of US$2 325 million.
The work to prepare and sign the agreements to sell the assets was launched in the end of 2013 and has now been successfully finalized. The transaction concludes the review of strategic options in relation to Severstal North America previously announced by Severstal.
“The sale of Columbus and Dearborn unlocks substantial value to Severstal’s shareholders,” said Alexey Mordashov, Chief Executive Officer of OAO Severstal. “On behalf of Severstal’s management I would like to express gratitude to the whole team at Dearborn and Columbus for their input in making Severstal North America one of the most efficient steel producers in the USA. We wish our colleagues further success in the development of the business,” he commented.
Completion of the sale is subject to customary closing conditions, including expiration of the Hart Scott Rodino Antitrust Improvements Act waiting period. The closing of the transaction is not subject to any financing conditions and is expected to be realized by year-end 2014.
Evercore and Citigroup acted as financial advisors to OAO Severstal. Skadden, Arps, Slate, Meagher & Flom LLP acted as OAO Severstal’s legal advisor.
John Packard
Read more from John PackardLatest in Steel Mills
Algoma fires up EAF steelmaking with first arc
Algoma Steel reached a milestone in its transformation from blast furnace to electric arc furnace (EAF) steelmaking, with its Unit One EAF achieving its first steel production this week.
Nucor holds HR list price at $910/ton
Nucor is keeping its list price for spot hot-rolled coil unchanged after last week’s shortened holiday week.
Cliffs unveils new hydrogen-powered stainless line in Ohio
CEO Lourenco Goncalves, flanked by state leaders and union reps, touted the project as proof that US manufacturing is not only alive, but also advancing.
Cliffs idles Steelton, Riverdale, and Conshohocken operations
Cliffs has idled facilities in Riverdale, Ill., and Conshohocken and Steelton, Pa.
Radius loss narrows, volumes climb in ‘healthy’ West Coast market
Stronger steel demand in the Western US, rising scrap flows, and improved rolling mill utilization drove sequential gains for Portland, Ore.-based Radius Recycling.