Published:
Severstal Completes Acquisition of Sparrows Point
Severstal Completes Acquisition of Sparrows Point
MOSCOW, May 7 /PRNewswire-FirstCall/ -- OAO Severstal (LSE: SVST; RTS:
CHMF), one of the world's leading metals and mining companies, today completed
its previously announced acquisition ofSparrows Point, a fully-integrated
steel mill based inBaltimore, Maryland,United States, from ArcelorMittal.
Severstal has received regulatory approval from the United States Department
of Justice and the Committee on Foreign Investment inthe United States.
Sparrows Point has a capacity of 3.6 million metric tons of crude steel
and shipped 2.3 million metric tons of finished steel products in 2007; it is
the only integrated producer of flat rolled steel on the U.S. East Coast and
is a major North American supplier of tin mill products.
The acquisition is expected to be accretive in year-one based on current
projections of costs and prices and offers significant value creation
potential. Additionally, Severstal expects substantial synergies with its
current U.S. operations inDearborn, Michigan andColumbus, Mississippi.
Merrill Lynch & Co. acted as financial advisor and Skadden, Arps, Slate,
Meagher & Flom LLP acted as legal counsel to Severstal.
About Severstal:
OAO Severstal is an international metals and mining company with a listing
on the Russian Trading System and the London Stock Exchange. Incorporated in
1993, the company focuses on high value added and unique niche products and
has a successful track record of acquiring and integrating high-quality assets
inNorth America andEurope. Severstal owns mining assets inRussia, thus
securing its supplies of raw materials. In 2007, Severstal produced 17.5
million tons of steel. Revenues were $15.2 billion and EBITDA was $3.7
billion. EPS was $1.92.
Forward Looking Statements:
This press release may contain projections and other forward-looking
statements regarding future events or the future financial performance of OAO
Severstal (Severstal). Forward looking statements are identified by terms such
as "expect," "believe," "anticipate," "estimate," "intend," "will," "could,"
"may" or "might," the negative of such terms, or other similar expressions.
Severstal wishes to caution you that these statements are only predictions and
that actual events or results may differ materially. Severstal does not intend
to update these statements to reflect events and circumstances occurring after
the date hereof or to reflect the occurrence of unanticipated events. Factors
that could cause the actual results to differ materially from those contained
in projections or forward-looking statements of Severstal may include, among
others, general economic conditions in the markets in which Severstal
operates, the competitive environment in, and risks associated with operating
in, such markets, market change in the steel and mining industries, as well as
many other risks affecting Severstal and its operations.
For further information:
Severstal
Dmitry Druzhinin, Investor Relations
Olga Antonova, Public Relations
+7 495 540 7766
Taylor Rafferty
Michael Henson
+1 212 889 4350 (o)
+1 917 902 0767 (m)
John Dudzinsky
+1 212 889 4350 (o)
+1 646 715 2980 (m)
SOURCE OAO Severstal
Copyright © 2008, PRNewswire
Copyright © 2008, NewsBlaze,
Daily NewsTags: Tags: Banking and Finance, , maryland, michigan, mississippi
_ _
Search News
Daily News
