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| May 2008
Severstal reaches agreement to acquire Sparrows Point OAO Severstal has reached an agreement to purchase ArcelorMittal’s Sparrows Point steel mill in Baltimore, Maryland. Sparrows Point, currently owned by ArcelorMittal, is being sold by Joseph G. Krauss, Divestiture Trustee, as required by the Final Judgment entered on May 23, 2007 in the United States District Court for the District of Columbia in the matter known as United States v. Mittal Steel Company N.V., to settle a complaint filed by the United States Department of Justice following the merger agreement between Mittal Steel and Arcelor SA in 2006. Severstal has agreed to acquire Sparrows Point LLC for an all cash purchase price of $810 million. The transaction is expected to be accretive in year one based on current projections of costs and prices and offers value creation potential. Severstal and the United Steel Workers have agreed to enter into a collective bargaining agreement, reinforcing the Company’s strong relationship with organized labor. The acquisition is expected to close in the second quarter, 2008. |
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