LUXEMBOURG (dpa-AFX) - Steel giant ArcelorMittal (MT) announces the sale of Skyline Steel and Astralloy Business in The NAFTA Region to Nucor Corp (NUE) for about $605 million on a debt free and cash free basis. The transaction is expected to be completed by the end of the second quarter of 2012.
The transaction includes 100% of ArcelorMittal's stake in Skyline Steel's operations in the NAFTA countries and the Caribbean. Skyline Steel is a premier steel foundation distributor serving the US, Canada, Mexico and the Caribbean and is a wholly-owned subsidiary of ArcelorMittal.
ArcelorMittal said that the transaction is consistent with its stated strategy of selective divestment of non-core assets and will continue to own and operate the foundation distribution businesses in the rest of the world.
As part of the transaction ArcelorMittal and Nucor will enter into certain long-term commercial agreements whereby the parties intend for ArcelorMittal to continue to provide Skyline Steel with a full range of sheet piling and wear resistant products.
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