ArcelorMittal announced on Thursday, August 2, that it will sell its Sparrows Point mill to a joint venture sponsored by Chicago-based Esmark Inc.
Terms of the agreement have not been disclosed, as the deal is pending review by the Justice Department, which must approve the deal.
"We have been working with the Department of Justice for several months to satisfy the terms of the consent decree and are pleased that this process has reached its conclusion," ArcelorMittal's Chief Financial Officer Aditya Mittal said in a statement.
Esmark President Jim Bouchard said Esmark and Wheeling-Pitt, which Esmark took control of last year, are partnering with other companies to make the Sparrows Point purchase possible. The other partners include two financial investors, Brazilian mining and metals company Companhia Vale do Rio Doce, and an unnamed European steel company.
These partnerships will allow Sparrows Point to supply slab to Wheeling-Pitt, and for CVRD to supply iron ore to Sparrows Point.
The new joint venture will be called E2 Acquisition Corp. The transaction is expected to close in autumn of this year.
ArcelorMittal, formed last year by the Mittal Steel takeover of Arcelor, was ordered by the US Department of Justice to sell Mittal's Sparrows Point as a condition for its merger.
Located near Baltimore, Maryland, Sparrows Point is a fully integrated steel-making facility capable of producing 3.9 million tons of raw steel annually. Products made at Sparrows Point include hot rolled sheets, cold rolled sheet, galvanized sheet, tin mill products and semi finished steel. Markets served include construction, steel service centers, automotive, container and appliance.