ArcelorMittal To Sell Skyline Steel To Nucor For $605 Million
ArcelorMittal, the largest steel producer in the world, announced in a press release on Friday that they will be selling Skyline Steel and Astralloy to Nucor Corporation for $605 million.
The press release detailed that Aditya Mittal, CFO and member of the Group Management Board for AcrelorMittal, stated:
“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…As the largest supplier to Skyline Steel, Nucor was a natural buyer for this subsidiary business.”
The sale of Skyline Steel was announced on Friday, and is, according to The Economic Times, one way the company is trying to pay down debt. The stated that:
“The deal is in keeping with ArcelorMittal’s plan to sell non-core assets to pay down debt and brings the total number of announced non-core asset sales to about $2.2 billion since September 2011, according to Dow Jones Newswires calculations.”
Friday’s press release detailed of the transaction that:
“The transaction is subject to customary closing conditions, including but not limited to competition clearance, and is expected to be completed by the end of the second quarter of 2012.”
The Economic Times reports that last year, Skyline Steel generated a revenue of $873 million, making Nucor’s purchase a good investment, should the company continue to do well. The press release stated of the selling company that:
“ArcelorMittal is the leader in all major global carbon steel markets, including automotive, construction, household appliances and packaging, with leading R&D and technology.”
According to Fox Business:
“…the transaction includes all of ArcelorMittal’s stake in Skyline Steel’s operations in the U.S., Canada, Mexico and the Caribbean. The sale doesn’t include Skyline Steel’s operations in the rest of the world, which will continue to be owned and operated by ArcelorMittal.”
