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ArcelorMittal Confirms Proposed Sale of Sparrows Point
03/27/2008 - ArcelorMittal confirms the Court-appointed divestiture trustee has entered into an agreement to sell ArcelorMittal's Sparrows Point steel mill.
In a published statement, ArcelorMittal has confirmed that the Court-appointed divestiture trustee has entered into an agreement to sell ArcelorMittal's Sparrows Point steel mill.
According to the agreement, the Sparrows Point facility will be sold to OAO Severstal for US$810 million, net of debt. Sparrows Point, originally a Bethlehem Steel facility, had EBITDA of US$25 million in 2007.
Sale of the mill had been ordered as part of a consent decree entered in the United States District Court in order to comply with an anti-trust ruling related to the 2006 merger between Mittal Steel and Arcelor SA. The court had appointed Joseph G. Krauss as the divestiture trustee; Krauss has been seeking the sale of the mill since his appointment.
The sale is subject to customary closing conditions, including approval by the United States Department of Justice, and is expected to close in the second quarter of 2008.
ArcelorMittal is the world's largest and most global steel company, with 310,000 employees in more than 60 countries. The company leads a number of major global markets, including automotive, construction, household appliances and packaging, with leading R&D and technology, as well as sizeable captive supplies of raw materials and outstanding distribution networks. An industrial presence in 28 European, Asian, African and American countries exposes the company to key steel markets, from emerging to mature, positions it will be looking to develop in the high-growth Chinese and Indian markets.
ArcelorMittal’s key unaudited financials for 2007 show revenues of USD 105.2 billion, with a crude steel production of 116 million tonnes, representing around 10% of world steel output.
