Russian steelmaker Severstal has announced that it has entered into separate definitive transaction agreements to sell its Severstal Columbus and Severstal Dearborn subsidiaries, collectively known as Severstal North America, to US steelmakers Steel Dynamics and AK Steel Corporation, respectively, for a total cash consideration of $2.325 million.
The work to prepare and sign the agreements to sell the assets was launched at the end of 2013 and has now been successfully finalized. The transaction concludes the review of strategic options in relation to Severstal North America previously announced by Severstal.
Completion of the sale is subject to customary closing conditions, including expiration of the waiting period stipulated by the Hart Scott Rodino Antitrust Improvements Act. The closing of the transaction is not subject to any financing conditions and is expected to be realized by the end of 2014.