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May 20, 2008 – 3:00 amSeverstal to acquire WCI Steel in US
Severstal announced that it has reached a binding agreement to purchase WCI Steel. The acquisition is subject to customary closing conditions, including the receipt of all necessary government and regulatory approvals. Under the terms of the agreement, Severstal will acquire all outstanding equity of WCI for a total cash consideration of US$ 140 million, implying an enterprise value of US$ 327 million. WCI’s Board of Directors has recommended the transaction to its shareholders.
Speaking on the occasion, Mr Gregory Mason CEO of Severstal International and COO of OAO Severstal said “This acquisition is aligned with Severstal’s disciplined approach to growing our US business while creating shareholder value. It solidifies our position as the fourth largest steel producer in the US by raising Severstal’s total US capacity to just under 11 million tonnes per year. The addition of WCI to Severstal’s family will enhance our custom product capabilities and create opportunities to increase profitability in both the short and long-term.”
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