OAO Severstal has announced plans to acquire the business of PBS Coals, a miner and processor of metallurgical and thermal coal. PBS has six underground and six surface coal mines in Somerset County, Pa. Severstal will acquire PBS for $1.3 billion to help supply its U.S. operations with coking coal. PBS has the capacity to produce over 4 million metric tons of metallurgical coal annually and has 133.5 million metric tons of in-place coal reserves.
Through its acquisition of PBS, Severstal expects to achieve benefits from the vertical integration of its upstream operations and to increase its self-sufficiency with regard to primary raw materials supply for its North American operations. Severstal acquired Wheeling-Pittsburgh parent company Esmark Inc. earlier this month (four plants in Ohio, West Virginia and Pennsylvania) and has purchased plants in Baltimore, Md., and Warren, Ohio.
Severstal to Acquire PBS Coals
August 26, 2008