Court gives green light to Birmingham Steel sale
A federal bankruptcy judge has approved the sale of Birmingham Steel to its competitor Nucor Corp according to press reports. Consequently the 45 years old US steel making group who had filed for Chapter 11 bankruptcy in June, will become a subsidiary of Nucor Corp. The deal is worth $615 million to be paid by Nucor Corp and shareholders of Birmingham Steel will reportedly receive approximately $15 million. The balance will be used to pay Birmingham Steel's debt of $630 million. Birmingham Steel's Alabama, Illinois, Washington, and Missisippi plants, another mill in Tennessee, PESCO (Port Everglades Steel Corp), and the Klean Steel Division's ownerships will pass to Nucor Corp. The above mentioned four plants represent 2 million tons per year capacity which is going to strengthen Nucor's position as leading manufacturer of bars for construction in the US. The deal is still subject to approval of antitrust regulators.