Russia's Severstal selling US plants for $2.3B
Russian steel company Severstal is exiting the U.S. market, selling a pair of steel plants to AK Steel and Steel Dynamics for about $2.33 billion.
Word of a possible sale began to circulate earlier this year as the West threatened sanctions against Russia for its activity in the Ukraine, but Severstal has not among those companies targeted by those actions.
Steel Dynamics Inc. said Monday that it will pay about $1.63 billion for Severstal Columbus, which is located in northeast Mississippi. The acquisition will increase Steel Dynamics' annual steel shipping capacity by approximately 40 percent to 11 million tons.
Steel Dynamics anticipates the deal will immediately add to its earnings per share.
The boards of both companies have approved the sale, which is expected to be completed before year's end.
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