Russian steelmaker completes Esmark acquisition

Russian steelmaker completes Esmark acquisition

MORGANTOWN (AP) -- Russia's OAO Severstal has completed its acquisition of Esmark Inc. for $775 million, plus the assumption of debt and loans, the companies announced Tuesday. That puts the total value of the deal at around $1.25 billion.

When its $19.25 per share tender offer expired Monday, Severstal had claimed 38,767,487 Esmark shares, or 94.2 percent of the total. Esmark's stock will no longer be traded, and it is now a wholly owned subsidiary called Severstal Wheeling Holding Co.

Esmark's subsidiaries are also being renamed: West Virginia's Wheeling-Pittsburgh Steel Corp. will become Severstal Wheeling Inc., while Illinois-based Esmark Steel Services Group will become Northern Steel Group Inc.

Severstal already had a partnership with Wheeling-Pitt, a coke plant in Follansbee called Mountain State Carbon. By assuming full ownership, it ensures a long-term supply of coke, a key raw material in steelmaking.