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Arcelor Mittal to sell US steel plant for $1.35bn
The world’s largest steelmaker, Arcelor Mittal, on friday said it had received clearance from the US anti trust anthorities to sell its Sparrows point stell mill for $1.35 billion. The transaction is expected to close in October, subject to oversight and approval by the recently appointed court trustee, a company statement said.
The Europe based steelmaker was ordered by the American anti trust authorities to divest the plant in Maryland, US, early this year. The sale was a condition set by the US competition authorities to allow the merger of Mittal and Arcelor. The plant will be acquired by a joint venture entity sponsored by Esmark Incorporated and Wheeling Pittsburg Corp, with participation by industry and institutional investors. Arcelor Mittal will divest the related railway, intellectual property and other assets associated with the Sparrows point facility as part of the transaction. A rcelor Mittal was formed in July 2006 through the merger of Mittal Steel Co NV and Arcelor SA after a long takeover battel.
The company produces about 10 per cent of the global steel output. The steel giant’s shares traded for $65.17 per share in the European markets on Friday