The sale of the Sparrows Point steel mill from ArcelorMittal to Russian firm OAO Severstal was approved by theDepartment of Justice Tuesday afternoon, paving the way for a final closing and transfer during this fiscal quarter.
In a brief statement, a Justice Department spokeswoman said the agency “has granted its approval to the Trustee?s proposed sale of Sparrows Point to Severstal.”
Severstal announced March 21 it had reached an agreement to purchase Sparrows Point for $810 million, but an exact timeline for the transfer of the steel mill has not been determined.
During a conference call with investors late last month, Severstal executives said they expected approval from the Justice Department and federal regulators as soon as mid-May and planned to bring the plant to its full operational capacity.
Severstal spokesman Michael Henson declined specific comment on the Justice Department?s sign-off and said the company “continues to work diligently with all interest parties to close the deal in the first half of the quarter.”
Washington lawyer Joseph Krauss, the court-appointed trustee for the sale, and ArcelorMittal representatives could not be reached for comment Tuesday.
ArcelorMittal agreed in February 2007 to divest Sparrows Point to resolve Justice Department antitrust concerns over the merger between Mittal Steel Co. NV, of the Netherlands, and Arcelor SA of Luxembourg, which created the company.
A $1.35 billion sale agreement reached with a group of investors led by Chicago-based Esmark Inc. fell apart in mid-December. At the time, United Steelworkers officials said delays by ArcelorMittal in negotiating union benefits spurred a disagreement between Esmark and its international strategic partners, dooming the deal.
Severstal, which also has operations in Dearborn, Mich., and Columbus, Miss., said at the time of the sale announcement it has entered into a collective bargaining agreement with the steelworkers union.
