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Severstal to sell its U.S. business for $2.3 billion

Staff writer |
Russia's Severstal had agreed to sell its U.S. subsidiaries in a $2.3 billion deal that concludes the review of its North American operations.

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The company said it would sell subsidiaries Severstal Columbus in Ohio and Severstal Dearborn in Michigan to Steel Dynamics and AK Steel Corporation, respectively. The closing of the deal is not subject to any financing conditions and is expected by the end of 2014, it said.

Moscow-traded shares in Severstal were up 2.2 percent by 0705 GMT, outperforming a broader market index which was down 0.8 percent.

Last week, Severstal said it had agreed to sell Pennsylvania-based metallurgical coal producer PBS Coals to Canada's Corsa Coal for an enterprise value of $140 million.

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