New York-based investment company Renco Group said on Wednesday it agreed to buy three of Russian steelmaker Severstal's (CHMF.MM) U.S. mills to create its own flat-rolled steel business in a deal valued at $1.2 billion. The new unit, RG Steel, will be the fourth-largest producer of flat-rolled steel in the United States and take its place beside other Renco assets, such as Humvee maker AM General. Severstal said separately that it would receive $125 million in cash, a $100 million secured note and repayment of $317 million of third party debt. Renco will assume Severstal liabilities totaling $650 million.
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