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5 Aug, 2008 04:57

Severstal completes Esmark buyout

Severstal completes Esmark buyout

Russian steelmaker Severstal has completed its acquisition of US counterpart Esmark.

Esmark will now become a Severstal subsidiary to be known as Severstal Wheeling Holding company.

Severstal agreed to buy Esmark with an agreement on June 25, valuing the US steelmaker at up to $775 million and beating off competition from India’s Essar.

Severstal initially bid $17 per share, and then subsequently raised this to $19.25.

Severstal gave shareholder until the August 4 to indicate their acceptance of the revised offer. At the close of business on Monday 94.17% of shares had been tendered.  Trading in Esmark on the NASDAQ will be discontinued.