Severstal to Sell U.S. Plants for $2.3 Billion
Russia’s OAO Severstal entered into separate definitive transaction agreements to sell its Severstal Columbus (Mississippi) and Severstal Dearborn (Michigan) subsidiaries, collectively known as Severstal North America, to Steel Dynamics and AK Steel, respectively, for approximately $2.3 billion. Steel Dynamics will purchase Severstal Columbus for approximately $1.6 billion. The acquisition expands Steel Dynamics’ annual steel shipping capacity to 11 million tons, representing a 40% increase. AK Steel will purchase Severstal Dearborn, which is capable of producing about 2.5 million tons of finished steel per year, for $700 million. The acquisition also includes a cokemaking facility and interests in three joint ventures that process flat-rolled steel products.