Russia's Severstal closes $775mln deal to buy U.S.-based Esmark
MOSCOW, News Source Info NSI-August 5, 2008 - Russian steel producer Severstal [RTS: CHMF] said on Tuesday it had finalized a $775 million deal to buy the U.S.-based steelmaker Esmark.
The offering period for Severstal's tender offer for all outstanding shares in Esmark expired on Monday, with almost 39 million Esmark shares tendered in the offer and not withdrawn, representing around 94.17% of the outstanding shares of Esmark's common stock, Severstal said.
Esmark, which is headquartered in Wheeling, West Virginia and produces about 750,000 metric tons of steel products a year, is now a wholly-owned subsidiary of Severstal and has been renamed Severstal Wheeling Holding Company, the Russian steelmaker said.
Severstal has recently been pursuing a strategy aimed at buying U.S.-based steel assets to strengthen its North American position in the high-quality flat-rolled steel segment for the automotive, appliance, furniture, construction and energy markets.
In early July, Severstal finalized a deal to buy 100% of U.S.-based WCI Steel's shares for $140 million. In May, the company closed a deal to purchase the U.S.-based Sparrows Point steel mill from ArcelorMittal for $810 million.
Tuesday, August 05, 2008
Russia's Severstal closes $775mln deal to buy U.S.-based Esmark
Russia's Severstal closes $775mln deal to buy U.S.-based Esmark
MOSCOW, News Source Info NSI-August 5, 2008 - Russian steel producer Severstal [RTS: CHMF] said on Tuesday it had finalized a $775 million deal to buy the U.S.-based steelmaker Esmark.
The offering period for Severstal's tender offer for all outstanding shares in Esmark expired on Monday, with almost 39 million Esmark shares tendered in the offer and not withdrawn, representing around 94.17% of the outstanding shares of Esmark's common stock, Severstal said.
Esmark, which is headquartered in Wheeling, West Virginia and produces about 750,000 metric tons of steel products a year, is now a wholly-owned subsidiary of Severstal and has been renamed Severstal Wheeling Holding Company, the Russian steelmaker said.
Severstal has recently been pursuing a strategy aimed at buying U.S.-based steel assets to strengthen its North American position in the high-quality flat-rolled steel segment for the automotive, appliance, furniture, construction and energy markets.
In early July, Severstal finalized a deal to buy 100% of U.S.-based WCI Steel's shares for $140 million. In May, the company closed a deal to purchase the U.S.-based Sparrows Point steel mill from ArcelorMittal for $810 million.
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