The Russian steelmaker Severstal has announced that its raw material subsidiary Severstal Resources intends to acquire the business of US-based PBS Coal Corporation (PBS) through the acquisition of Penfold Capital Acquisition Corporation (Penfold), following the latter's merger with PBS, for a total of $1.3 billion.
PBS is engaged in the mining, processing and sale of coking and thermal coal in Somerset County, Pennsylvania, US, and has an annual production capacity of over four million mt of coking coal.
PSB has 133.5 million mt of in-place coal reserves and 228.3 million mt of in-place coal resources.
The acquisition of PSB will enable Severstal to secure stable coking coal supplies to its US-based operations, maximizing its production and profit potentials.