Esmark to buy East Coast mill from Mittal Steel
HAGERSTOWN, Md. -- Mittal Steel Co. NV said Thursday it will sell its Sparrows Point mill near Baltimore to a group led by privately held steel distributor Esmark Inc., based in Chicago Heights, for an undisclosed price to settle U.S. antitrust concerns.
The deal is subject to approval by the U.S. Justice Department, which ordered the Dutch steelmaker in February to sell Sparrows Point to preserve U.S. competition in production of tin-plated steel, used to make cans for food, aerosol sprays and paint.
Mittal said it would announce more details after receiving regulatory approval of the sale, which is expected to close by Oct. 31.
The deal's completion would clear the way for Mittal's planned $41 billion acquisition of Arcelor SA of Luxembourg, which will create the world's largest steelmaker.
Esmark is run by brothers James P. and Craig T. Bouchard. Founded in 2003, it has grown by acquiring other steel companies and is in the process of buying Wheeling-Pittsburgh Corp., a West Virginia steelmaker it won control of in a proxy fight last fall.
Esmark Chairman James P. Bouchard said in a statement that Esmark and Wheeling-Pitt will jointly lead the acquisition group, to be called E2 Acquisition Corp.
Esmark President Craig Bouchard said the other investors include a European steelmaker and a South African company, but he didn't identify them.