Severstal sells Warren, Wheeling and Sparrows Point US-based facilities

The Russian steel and mining company Severstal has announced that it has entered into a definitive agreement to sell three assets of its North American division Severstal North America, including the Sparrows Point, Warren and Wheeling facilities, to the Renco Group, a US-based private holding company.
 
The transaction is expected to be completed in March 2011, subject to customary completion conditions, including expiration or early termination of the Hart-Scott-Rodino waiting period.
 
As transaction consideration, Severstal will receive $125 million in cash, a $100 million secured note, and the repayment of $317 million of third-party debt at closing. Renco will also assume various Severstal financial liabilities including employee-related and environmental liabilities totaling $650 million.
 
The sale will leave Severstal North America focused on its Dearborn and Columbus facilities which are some of the most modern and efficient in North America, said the company.