ArcelorMittal Files Suit against Esmark/E2
05/09/2008 - ArcelorMittal has filed suit against Esmark Inc., E2 Acquisition, seeking in excess of $540 million for breach of its contract to purchase Sparrows Point.
ArcelorMittal has filed suit against Esmark Inc., E2 Acquisition Corp. (Esmark/E2), seeking in excess of $540 million for breach of contract.
Esmark/E2 had entered a contract August 1, 2007 to purchase the Sparrows Point steel manufacturing facility from ArcelorMittal for $1.35 billion. That contract was terminated on December 16, 2007, after Esmark/E2 failed to complete the transaction.
Sparrows Point was subsequently sold to OAO Severstal for $810 million, net of debt, on May 7, 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, 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 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.
