Mittal Steel may sell Weirton mill to Esmark
Mittal Steel Co has said it is in negotiations to sell parts of its West Virginia operations to Illinois-based Esmark Inc, the rapidly growing steel supplier that seized control of nearby Wheeling-Pittsburgh Corp last fall.
By Agencies |
MORGANTOWN (WEST VIRGINIA): Mittal Steel Co has said it is in negotiations to sell parts of its West Virginia operations to Illinois-based Esmark Inc, the rapidly growing steel supplier that seized control of nearby Wheeling-Pittsburgh Corp last fall.
Mittal spokesman Dave Allen would not say exactly what assets in Weirton are being discussed, but he told The Associated Press that a nonbinding memorandum of understanding has been signed.
"We do not have a definitive agreement on any of the deal terms," he said yesterday.
But the announcement means 1,250 workers at the former Weirton Steel Corp are now facing their third potential change of ownership since 2003.
Netherlands-based Mittal must sell one of its US assets to resolve antitrust issues raised by its ongoing merger with Arcelor SA of Luxembourg.
ADVERTISEMENT
The world's largest steelmaker had been weighing the sale of either Weirton or Sparrow's Point near Baltimore, and had been awaiting a ruling from the US Department of Justice since deciding it could not dispose of Canadian steelmaker Dofasco Inc.A spokeswoman told the media on Thursday that Justice officials have not yet ruled on which assets Mittal must sell.
Mittal, however, has publicly said it would prefer to dispose of Weirton to resolve the antitrust concerns and has previously said there are least 10 potential buyers.
Among them is former International Steel Group executive Mitchell Hecht, who says Mittal has ignored his offers to buy Weirton, restart the blast furnace to make pig iron and rehire several hundred workers.
ADVERTISEMENT
The deal with Esmark is subject not only for due diligence (close examination of the books) by the buyer, but also approval of the Independent Steelworkers Union, Allen said.The union, which did not immediately comment, has the right to reject a change in ownership under the successorship clause in its current contract.
ADVERTISEMENT
The deal could unite two Northern Panhandle steel companies that past executives had considered merging several times.Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
