ArcelorMittal sells American steel plant

ArcelorMittal sells American steel plant

Brussels: The world’s largest steelmaker, ArcelorMittal on 6 September said it had received clearance from US anti-trust authorities to sell its Sparrows Point steel mill for $1.35 billion.

The transaction is expected to close in October, subject to oversight and approval by the recently appointed court trustee, the statement said.

The Europe-based steelmaker was ordered by American anti-trust authorities to divest the plant in Maryland, US earlier this year. The sale was a condition set by the US competition authorities to allow the merger of Mittal Steel and Arcelor.

The plant will be acquired by a joint venture entity sponsored by Esmark Incorporated and Wheeling-Pittsburgh Corp, with participations by industry and institutional investord railway, intellectual property and other assets associated with the Sparrows Point facility as part of the transaction.

Recently, however, the company bought majority control of one of the largest iron-ore mines in northeastern Canada to fulfil its objective of “iron-ore self-sufficiency".

ArcelorMittal was formed in July 2006 through the merger of Mittal Steel Co. NV and Arcelor SA after a long takeover battle. The company produces about 10% of the global steel output.

Mittal Steel’s Arcelor bid - estimated at around $41 billion - has been marred by problems. Brazil’s market regulator forced it to spend nearly 4 billion euro to buy out Arcelor’s Latin American steel units, and the US regulators ordered it to sell off its major steel plant in Maryland.