United States Steel Corp. sells its noncore business

United States Steel Corp. sells its noncore business

Financially troubled United States Steel Corp. is selling some of its noncore business to a New York private equity firm called Apollo Management LLP. The noncore business involves here U.S. Steel Corp.'s coke and iron ore operations and the transportation unit Transtar Inc. A $500 million in cash will be generated by sales of these units. This amount will be of great financial support, allowing the company to redeploy capital to other potential uses like strategic acquisition opportunities in order to expand the core steel making business or paying down debt. According to reports, the Apollo Management LLP will shortly establish another company to acquire the assets. U.S. Steel will retain 20% in that company while Apollo Management LLP will hold the 80%. The assets to be acquired involve coke facilities in Clairton, Pa. And Gary, Ind., iron ore mining operations in Minnesota and Transtar Inc., which transports iron ore, coke and other steelmaking materials by rail and barge in the Great Lakes area.