Luxembourg and Porto Alegre, 17-9-2014 — /EuropaWire/ — ArcelorMittal and Gerdau jointly announced today that they have entered into a definitive transaction agreement to sell their respective 50% interests in Gallatin Steel Company (“Gallatin”) to Nucor Corporation for a total cash consideration of US$770m, subject to customary closing adjustments.
Gallatin is a flat rolled mini-mill located in Gallatin County, Kentucky, USA that melts scrap, pig iron and hot briquetted iron from various sources, and processes the material to produce flat rolled steel. Gallatin’s high quality assets produce a wide range of steels from low to high carbon grades with an annual capacity of around 1.8 million tons.
“The sale of Gallatin unlocks substantial value for ArcelorMittal’s shareholders and is consistent with ArcelorMittal’s stated strategy of selective divestment of non-core assets. I would like to thank all our employees in Gallatin for their hard work and commitment during the years that we have co-owned this mill” said Aditya Mittal, CFO of ArcelorMittal.
“The decision to sell Gallatin was made in order for Gerdau to focus on its core assets in North America. On behalf of Gerdau’s management, I would like to express gratitude to the whole team at Gallatin for their efforts in making Gallatin a great company”, said Gerdau’s chief executive officer (CEO) André B. Gerdau Johannpeter.
Completion of the sale is subject to customary closing conditions, including expiration of the Hart Scott Rodino Antitrust Improvements Act waiting period. The closing of the transaction is not subject to any financing conditions and is expected to be realized by the end of 2014.
Gerdau is the leading manufacturer of long steel in the Americas and a major global supplier of special long steels. The company recently began operations in two new Brazilian markets, with the production of flat steel and the expansion of its iron mining activities, initiatives that are expanding its product mix and the competitiveness of its operations. With more than 45,000 employees, Gerdau has industrial operations in 14 countries – the Americas, Europe and Asia – with a combined installed capacity of more than 25 million tons of steel a year. It is also Latin America’s biggest recycler and, worldwide, transforms millions of tons of scrap metal into steel every year, reinforcing its commitment to sustainable development in the regions where it operates. With more than 120,000 shareholders, Gerdau’s shares are listed on the New York, São Paulo and Madrid stock exchanges.
ArcelorMittal is the world’s leading steel and mining company, with a presence in more than 60 countries and an industrial footprint in over 20 countries. Guided by a philosophy to produce safe, sustainable steel, we are the leading supplier of quality steel in the major global steel markets including automotive, construction, household appliances and packaging, with world-class research and development and outstanding distribution networks.
Through our core values of sustainability, quality and leadership, we operate responsibly with respect to the health, safety and wellbeing of our employees, contractors and the communities in which we operate.
For us, steel is the fabric of life, as it is at the heart of the modern world from railways to cars and washing machines. We are actively researching and producing steel-based technologies and solutions that make many of the products and components we use in our everyday lives more energy-efficient.
We are one of the world’s five largest producers of iron ore and metallurgical coal and our mining business is an essential part of our growth strategy. With a geographically diversified portfolio of iron ore and coal assets, we are strategically positioned to serve our network of steel plants and the external global market. While our steel operations are important customers, our supply to the external market is increasing as we grow.
In 2013, ArcelorMittal had revenues of $79.4 billion and crude steel production of 91.2 million tonnes, while own iron ore production reached 58.4 million tonnes.
ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS).
For more information about ArcelorMittal please visit: http://corporate.arcelormittal.com.