Russia’s Severstal closes $775 mln deal to buy US-based Esmark

Deals

Russian steel producer Severstal said on Tuesday it had finalized a $775 million deal to buy the US-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all outstanding shares in Esmark expired on Monday, with almost 39 million Esmark shares tendered in the offer and not withdrawn, representing around 94.17% of the outstanding shares of Esmark’s common stock, Severstal said.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 US-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 US-based WCI Steel’s shares for $140 million. In May, the company closed a deal to purchase the US-based Sparrows Point steel mill from ArcelorMittal for $810 million. (rian.ru)

ADVERTISEMENT

Business confidence improves as consumer sentiment worsens Analysis

Business confidence improves as consumer sentiment worsens

Meeting called to address Pegasus spyware lacks quorum  Parliament

Meeting called to address Pegasus spyware lacks quorum 

Skanska commercial dev unit names new EVP of operations Hung... Appointments

Skanska commercial dev unit names new EVP of operations Hung...

Zsa Zsa Gabor's ashes buried in Budapest City

Zsa Zsa Gabor's ashes buried in Budapest

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.