The Russian steel maker OAO Severstall, is about to sell its U.S plants to Stell Dynamics Inc. and AK steel holding corporation. Steel Dynamics is an Indian based steel manufacturer and Ak Steel is an Ohio based steel producer.
Two plants are traded in costs $2 billion and official agreement is likely to be done in coming week. Stell Dynamics will buy the plant which is located in Columbus, Mississippi, whereas AK steel will have that one which is situated in Dearborn, Michigan. Recently, OAO has put its Pennsylvania plant coal units to Coprsa Coal crop that is a Canadian company in $140 million. People relate all these agreements to the existing tension between U.S and Russia on the subject of Ukraine. However, Morgan Stanley analyst Dmitry Kolomytsyn, has denied these reasons. They said that they merely sold those plants because the contracts were good for company. The proof of it is that Severstal was in search of first class buyers to sell its North American property since last year and the present political issue is not linked with it.
The fact is that severstal is one of those minorities which started selling its asset without any delay instead of waiting for the value to increase. The company is competent of making steel in quite low-price rate since in consideration of the fact that it is self sufficient in iron ore and cooking coal.
