Russian steelmaker and mining company OAO Severstal has announced plans to sell its Severstal Columbus LLC and Severstal Dearborn LLC subsidiaries to the American steelmakers, Steel Dynamics Inc. and the AK Steel Corporation respectively for US$325 million.
Alexey Mordashov, OAO Severstal's CEO, said that the sale 'unlocks substantial value to Severstal's shareholders'.
Completion of the sale is subject to the customary closing conditions, including expiration of the Hart Scott Rodino Antitrust Improvements Act waitng period. It is hoped that all will be signed, sealed and delivered by year-end 2014.
AK Steel is a leading global producer of flat-rolled carbon, stainless and electrical steel products primarily used for automotive, infrastructure, manufacturing, construction and the electrical power generation and distribution markets.
Steel Dynamics is one of the USA's largest domestic steel producers and metals recyclers.