Severstal gains support of UAW
Russian steel producer Severstal and Rouge Industries signed a non-binding letter of intent for the takeover of the assets of the latter by Severstal, as previously reported by SteelOrbis. Severstal offered $215 million for the assets, however on the condition that a bid of $1 million more than the Severstal's bid is offered, Severstal will lose the auction. According to Severstal officials, that Rouge Industries is under bankruptcy program, enabling other producers to offer their bids for the mill, extends the completion of the takeover. SteelOrbis previously reported that, for the take over to be completed, Severstal should reach an agreement with United Auto Workers (UAW), a union which represents Rouge Industries. The officials from Severstal has recently announced that they negotiated with UAW and reached a compromise. On the condition that takeover is completed, Severstal will supply semi products to Rouge Industries, so the company will be able to compete against its rivals.