Washington: The US Department of Justice has approved a $810 million deal allowing Russia's largest steel producer Severstal to purchase a US steel mill from ArcelorMittal, media reports said on Wednesday.

The US in February 2007 demanded ArcelorMittal sell the Sparrows Point steel mill in a bid to prevent monopolisation of the market after the merger of Mittal Steel and Luxemburg-based Arcelor.

Sparrows Point is located in Baltimore County, Maryland, and is currently owned by ArcelorMittal, a joint venture between Indian steel giant L. N. Mittal's Mittal Steel and Arcelor in 2006 with a controlling interest held by Mittal.

"The purchase of Sparrows Point adds to our portfolio of American assets. The plant already has significant value and possesses the potential for growth," Severstal CEO Alexei Mordashev earlier said.

Sparrows Point produces 3.6 million metric tonnes of steel per year. It is the only integrated producer of rolled metal on the US east coast, and also one of the leading American suppliers of tin.

"The deal will create additional sales opportunities for the company and expand the geographical scope of the delivery of Severstal products, creating an opportunity for direct ocean transportation... and providing proximity to a large number of US railroads and highways," Severstal earlier said.

Severstal is represented on both the Russian and the London stock exchanges. In 2007, it produced 17.5 million tonnes of steel and reported $15.2 billion in revenues.

 

Source : IANS