Mittal to sell US mill as part of Arcelor deal
A global team of companies led by a US steel distributor and maker has agreed to buy a coveted Maryland steel mill.business Updated: Aug 04, 2007 11:03 IST
A global team of companies led by a US steel distributor and maker has agreed to buy a coveted Maryland steel mill, paving the way for Mittal Steel Co to complete its acquisition of Arcelor SA and become the world's top steel-maker by far, The Wall Street Journal reported on Friday.
Chicago-based Esmark Inc., a closely held steel distributor that is buying steel-maker Wheeling-Pittsburgh Corp., formed a joint venture with Brazilian iron-ore producer Companhia Vale do Rio Doce and Ukrainian steel-maker Industrial Union of Donbass Corp. to buy the Sparrows Point plant in Maryland, according to the report.
The price wasn't disclosed, but a person familiar with the transaction valued it at $1.35 billion including debt and equity, the report added.
Mittal, headquartered in Rotterdam, Netherlands, already the world's largest steel-maker by output was under a US Justice Department mandate to sell the 118-year-old plant in order to alleviate antitrust concerns before allowing its $33 billion deal to acquire Luxembourg-based Arcelor to be completed.