Luxembourg-based global steelmaker ArcelorMittal has announced that it will sell its steel foundation distribution subsidiaries Skyline Steel and Astralloy in the North American Free Trade Agreement (NAFTA) region to US-based Nucor Corporation (Nucor) for a total consideration of approximately $605 million.
The transaction which is in line with ArcelorMittal's strategy of divestment of non-core assets includes 100 percent of ArcelorMittal's stake in Skyline Steel's operations in the NAFTA countries and the Caribbean. The sale is expected to be completed by the end of the second quarter of 2012. Under the sales transaction, ArcelorMittal and Nucor will enter into long-term commercial agreements according to which ArcelorMittal will continue to provide Skyline Steel with sheet piling and wear resistant products.
Skyline Steel distributes high quality products in the US, Canada, Mexico and the Caribbean. Nucor is currently the largest supplier of steel for Skyline Steel.