Russia’s Severstal to buy US steel firmJuly 8th, 2008 - 7:13 pm ICT by IANS
Moscow, July 8 (RIA Novosti) Russia’s largest steel producer Severstal Tuesday said it had finalized a deal to buy US-based WCI Steel for $140 million. WCI Steel will be eventually renamed Severstal Warrant Inc., the Russian company said.
The board of directors of Ohio-based WCI, which produces 1.22 million tones of high-quality, customized, flat-rolled steel annually, earlier recommended the takeover to its shareholders.
Shareholders representing a majority of WCI’s shares unanimously consented to the deal, which was also supported by the United Steelworkers of America, Severstal said.
“Together with Severstal’s current US operations in Dearborn, Michigan, Columbus, Mississippi, and the recently acquired Sparrows Point in Baltimore, Maryland, WCI will increase the Company’s North American leadership in the high-quality flat-rolled steel segment for the automotive, appliance, furniture, construction and energy markets,” the Russian steel firm said in a statement.
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