Severstal purchases third U.S. steelmaker

MOSCOW, Aug. 5 (UPI) -- Russian steel giant Severstal has completed a $775 million tender offer, buying 94 percent of U.S. steelmaker Esmark's outstanding shares, the company said.

With the deal complete, Severstal has purchased 39 million shares of Esmark of Wheeling, W.Va., RIA Novosti reported.

Esmark produces about 750,000 metric tons of steel products a year. Now a Severstal subsidiary, it was renamed the Severstal Wheeling Holding Company, the company said.

Severstal closed two previous deals for U.S. steel companies this year. In July, Severstal purchased 100 percent of WCI Steel's shares for $140 million and in May it purchased Sparrows Point Steel from ArcelorMittal for $810 million, the news service reported.

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