ArcelorMittal Announces the Termination of the Sparrows Point Purchase
Agreement With E2
LUXEMBOURG and CHICAGO, Dec. 16 /PRNewswire-FirstCall/ -- ArcelorMittal
(NYSE: MT) announces today that it has terminated its agreement with E2
Acquisition Corporation ("E2") for the sale of ArcelorMittal USA's Sparrows
Point, Baltimore facility and related assets to E2 due to E2's inability to
secure financing.
ArcelorMittal terminated the purchase agreement upon the direction of the
court-appointed trustee who has the authority to affect the divestiture of
Sparrows Point.
E2 is a joint venture sponsored by Esmark Incorporated and
Wheeling-Pittsburgh Corporation. The execution of the definitive purchase
agreement for the sale of Sparrows Point to E2 was announced on August 2,
2007.
The closing date for the sale of Sparrows Point agreed to in the purchase
agreement with E2 was November 30, 2007. On November 29, 2007, ArcelorMittal
agreed to extend this date to December 11, 2007.
The divestiture of Sparrows Point by ArcelorMittal grew out of the bid by
Mittal Steel Company N.V. ("Mittal") for Arcelor S.A. As part of that
process, Mittal agreed with the DOJ, pursuant to a court-ordered consent
decree, to divest the Sparrows Point facility.
ArcelorMittal will continue to work closely with the DOJ and the
court-appointed trustee to satisfy the terms of the consent decree.
The trustee, Joseph Krauss of Hogan & Hartson LLP, has overall
responsibility on behalf of the DOJ to affect the divestiture of the Sparrows
Point plant. ArcelorMittal will assist the trustee in the process.
The trustee intends to retain an investment bank to assist him in the sale
process. No specific schedule has been established but the trustee's goal is
to obtain a transaction with the earliest possible closing date.
ArcelorMittal will continue to operate the plant during the divestiture
process, consistent with its obligations under its agreements with the DOJ.
ArcelorMittal remains committed to maintaining strong relationships with the
facility's customers and suppliers throughout the sale process.
Located near Baltimore, MD, Sparrows Point is a high-quality, successful
steel facility capable of serving a large variety of steel markets. The fully
integrated steel-making facility is capable of producing 3.9 million tons of
raw steel annually. Products made at Sparrows Point include hot-rolled sheet,
cold-rolled sheet, galvanized sheet, Galvalume, tin mill products, and
semi-finished steel. Markets served include construction, steel service
centers, automotive, container, and appliance.
Once again, ArcelorMittal thanks its entire work force for continuing to
stay focused on the plant's customers, business performance, and safety
compliance as the sale process moves forward.
About ArcelorMittal
ArcelorMittal is the world's number one steel company, with 320,000
employees in more than 60 countries. The company brings together the world's
number one and number two steel companies, Arcelor and Mittal Steel.
ArcelorMittal is the leader in all major global markets, including
automotive, construction, household appliances and packaging, with leading R&D
and technology, as well as sizeable captive supplies of raw materials and
outstanding distribution networks. An industrial presence in 27 European,
Asian, African and American countries exposes the company to all the key steel
markets, from emerging to mature, positions it will be looking to develop in
the high-growth Chinese and Indian markets.
ArcelorMittal key pro forma financials for 2006 show combined revenues of
USD 88.6 billions, with a crude steel production of 118 million tonnes,
representing around 10 per cent of world steel output.
ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam
(MT), Paris (MTP), Brussels (MTBL), Luxembourg (MT) and on the Spanish stock
exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS).
SOURCE ArcelorMittal
Investor Relations, Europe, +352 4792 2414, or Americas, +1-312-899-3569, or
Retail, +352 4792 2434, or SRI, +44 203 214 2854, or Bonds|Credit, +33 1 71 92
10 26; or Communications, +1-352-4792-5000, press@arcelormittal.com; or
Corporate Communications, Jean Lasar of ArcelorMittal, +352 4792 2359; or
Lydia Pretzlik or Martin Leeburn of Maitland Consultancy, +44 20 7379 5151,
for ArcelorMittal; or Belgium, Charles-Hubert Gernaert of Comfi, +32 2 290 90
90 for ArcelorMittal; or North America, Bill Steers, +1-312-899-3817; or
Netherlands, Leon Melens of Smink, Van der Ploeg & Jongsma, +31 20 647 81 81,
for ArcelorMittal; or Germany, Phoebe Kebbel of Herring Schuppener, +49 69 92
18 74 77, for ArcelorMittal; or France, Sandra Luneau, +33 1 71 92 00 58, or
Anne France Malrieu or Tiphaine Hecketsweiler of Image 7, +33 1 5370 7470,
both for ArcelorMittal; or Spain, Ignacio Agreda, +34 94 489 4162, or Oscar
Fleites, +34 98 512 60 29, or Keith Grant, +34 639 760 397, all of
ArcelorMittal
