OAO Severstal, owner of the Sparrows Point steel mill in Baltimore County, has completed a $775 million acquisition of Esmark Inc., a West Virginia-based steel manufacturer, the company announced Tuesday.
A $19.25-per-share tender offer expired Monday with the Russian-owned firm in control of more than 38.7 million shares of Esmark, 94.2 percent of the company’s total shares. Esmark stock will no longer be traded, and the company will become a wholly owned subsidiary renamed Severstal Wheeling Holding Co.
“Not only does the addition of Esmark bring considerable stand-alone growth potential while also creating synergies with our existing U.S. plants, it solidifies Severstal’s position as one of the leading integrated steel companies,” Gregory Mason, CEO of Severstal International, said in a statement.
Severstal’s offer was backed by the United Steelworkers union and was accepted over one from India’s Essar Steel Holdings.
