Global steel giant
ArcelorMittal and Brazilian steelmaker
Gerdau have jointly announced that they have entered into a definitive transaction agreement to sell their respective 50 percent interests in Gallatin Steel Company (Gallatin) to
US-based
Nucor Corporation for a total cash consideration of $770 million, subject to customary closing adjustments. The closing of the transaction is not subject to any financing conditions and is expected to be realized by the end of 2014.
According to
Nucor, adding Gallatin to
Nucor's four existing flat rolled mills will increase
Nucor's total flat rolled product annual capacity by 16 percent to approximately 13 million mt.
Gallatin is a flat rolled mini-mill located in Gallatin County, Kentucky,
US that melts scrap, pig iron and hot briquetted iron from various sources, and processes the material to produce flat rolled steel. Gallatin's high quality assets produce a wide range of steels from low to high carbon grades with an annual capacity of around 1.8 million mt.