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It was announced today that ArcelorMittal, a premier steel market supplier, has completed the sale of its steel foundation distribution business in NAFTA, namely Skyline Steel and Astralloy to Nucor Corporation for a total consideration of approximately $605 million on a debt free and cash free basis. The transaction is expected to close by the end of the second quarter of 2012 but is still subject to customary closing conditions, including but not limited to competition clearance.
The transaction includes 100% of ArcelorMittal's stake in Skyline Steel's operations in the NAFTA countries and the Caribbean. ArcelorMittal will continue to own and operate the foundation distribution businesses in the rest of the world.
The transaction is consistent with ArcelorMittal's stated strategy of selective divestment of non-core assets. Its impact on the wider business will be limited since the Group has a strong sales network in the NAFTA region for its core product range, which will not be affected by this transaction.As part of the transaction ArcelorMittal and Nucor will enter into certain long-term commercial agreements whereby the parties intend for ArcelorMittal to continue to provide Skyline Steel with a full range of sheet piling and wear resistant products, which ArcelorMittal is uniquely positioned to manufacture.
Aditya Mittal, CFO and member of the Group Management Board for ArcelorMittal, said, "Skyline Steel and Astralloy are strong specialist businesses with excellent prospects in their markets. However, this decision is very much in line with our strategy of focusing on core assets and reducing net debt."
Skyline Steel is a steel market distributor serving the US, Canada, Mexico and the Caribbean and is a wholly-owned subsidiary of ArcelorMittal. Skyline Steel distributes high quality products to service the most challenging applications in the construction and infrastructure industries, including marine construction and bridge and highway construction.
ArcelorMittal is the world's leading steel and mining company, with a presence in the steel market across more than 60 countries. ArcelorMittal is the leader in all major global carbon steel markets, including automotive, construction, household appliances and packaging, with leading R&D technology. The Group also has a world class mining business with a global portfolio of over 20 mines in operation and development, and is the world's 4th largest iron ore producer.
For more information on the steel market, see the latest research: Steel Market Research
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