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Monday, July 21, 2014

Russia's Severstal sells U.S. plants to AK Steel and Steel Dynamics, (NASDAQ: STLD)

Steel Dynamics Inc will purchase Severstal's mini-mill in Columbus, Michigan for $1.62 billion in cash, and AK Steel will buy the Russian steelmaker's assets in Dearborn, Michigan for $700 million in cash.AK Steel said on Monday the deal also included a coke making facility and interests in three joint ventures that process flat-rolled steel products.Steel Dynamics said its deal was expected to be immediately accretive to earnings and cash flow per share and would help the company significantly expand its operating base with 3.4 million tons of hot roll steel production capacity.Severstal, controlled by billionaire Alexei Mordashov, had said in May that it was considering a range of strategic options for its North American operations.

Steel Dynamics, Inc. is a steel producer and metals recycler in the United States. Shares of STLD traded higher by 1.25% or $0.23/share to $18.58. In the past year, the shares have traded as low as $15.05 and as high as $19.74. On average, 2592970 shares of STLD exchange hands on a given day and today's volume is recorded at 2387988.