MORGANTOWN, W.Va. (AP) -- Russia's OAO Severstal says West Virginia-based Esmark is a nice addition to the puzzle it's assembling in North America.
Chief Operating Officer Gregory Mason says the plants and equipment have never realized their full potential, but Severstal will invest $250 million over five years to make sure they do.
Esmark accepted Severstal's offer of $19.25 per share. Including the assumption of debt, the deal is valued at $1.25 billion. Mason said Thursday that it could be completed in a few months.
He said everything will be up for review, and he expects collaboration with the United Steelworkers on restructuring.
Mason said that even if optimizing production means a work force reduction, the cuts would come naturally, through attrition.
