Severstal Buys U.S. Wci Steel

MOSCOW. May 18 (Interfax) – Russia’s Severstal (RTS: CHMF) has reached an agreement to buy WCI Steel, a U.S. integrated flat- rolled steel producer, for $140 million.

“WCI Steel’s Board of Directors has approved and the company has entered into a definitive agreement to sell the company to Severstal at a price of about $3.29 per share,” WCI Steel said a statement.

“In connection with the transaction, Severstal will assume over $230 million of debt and other obligations,” the statement says.

The U.S. United Steelworkers has already fully supported the acquisition. The transaction is expected to close in the third quarter of 2008.

WCI Steel’s capacity is 1.22 million tonnes and together with “Severstal’s current U.S. operations in Dearborn, Michigan, Columbus, Mississippi, and the recently acquired Sparrows Point in Baltimore, Maryland, WCI will grow the company’s North American leadership in the high-quality flat-rolled steel segment for the automotive, appliance, furniture, construction and energy markets,” Severstal said in a statement.

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