OREANDA-NEWS. March 02, 2011. Severstal (LSE: SVST; RTS: CHMF), one of the world’s leading steel and mining companies, has entered into a definitive agreement to sell the subsidiary of Severstal North America (“SNA”) which owns facilities at Warren, OH, Wheeling, WV, and Sparrows Point, MD to The Renco Group, Inc, a private holding company.

The transaction is expected to complete in March 2011, subject to customary completion conditions, including expiration or early termination of the Hart-Scott-Rodino waiting period.

As transaction consideration, Severstal will receive USD 125 million in cash, a USD 100 million secured note, and the repayment of USD 317 million of third-party debt at closing. Renco will also assume various Severstal financial liabilities including employee-related and environmental liabilities totaling USD 650 million.

The sale will leave SNA focused on its Dearborn and Columbus facilities which are some of the most modern and efficient in North America.

Severstal’s financial adviser on this transaction is Evercore Partners and its legal adviser is Skadden, Arps, Slate, Meagher & Flom LLP.