Severstal, a vertically-integrated steel and steel-related mining company, announced Monday that it has agreed to sell its Dearborn and Columbus subsidiaries to AK Steel Corporation and Steel Dynamics, Inc., respectively, for a total of $2.325 billion.
The work to prepare and sign the agreements to sell these facilities was launched in late 2013 and has now been finalized. The deal includes the review of strategic options in relation to Severstal North America previously announced by Severstal.
"The sale of Columbus and Dearborn unlocks substantial value to Severstal's shareholders," said chief executive officers of Severstal Alexey Mordashov. "On behalf of Severstal's management I would like to express gratitude to the whole team at Dearborn and Columbus for their input in making Severstal North America one of the most efficient steel producers in the USA. We wish our colleagues further success in the development of the business."
The completion of the sale is underway, including the end of the Hart Scott Rodino Antitrust Improvement Act waiting period. The closing of the deal isn't subject to financing conditions, and is expected to be realized by the end of 2014.