ArcelorMittal and Gerdau to sell US-based Gallatin Steel for $770 million

KOLKATA: ArcelorMittal and Gerdau made a joint announcement on Monday saying that they had entered into a definitive transaction agreement to sell their respective 50% interests in Gallatin Steel Company in the US to Nucor Corporation for a total cash consideration of $770million. For ArcelorMittal, the deal underlines the company's strategy of selective divestment of non-core assets.

Gallatin, a mini-mill located in Gallatin County, Kentucky produces flat rolled steel products and a wide range of steels from low to high carbon grades with an annual capacity of around 1.8 million tonne.

"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.