Nucor buys Skyline from ArcelorMittal for $605M
May 18, 2012 | 05:34 PM
| Michael Cowden
TORONTO - Nucor Corp. has acquired Skyline Steel LLC and Astralloy Steel Products Inc. from ArcelorMittal SA for $605 million in a deal analysts are calling a good fit for the steelmaker.
The deal should allow Charlotte, N.C.-based Nucor to further diversify downstream and enhance the value of its product offerings, Mark Parr, managing director at KeyBanc Capital Markets Inc., told AMM. The strategy of (Nucor) has been to value-up their product portfolio. This acquisition would be consistent with that, so strategically, certainly, it looks like it could make sense.
The move also will boost Nucors presence in construction and infrastructure, sectors in which the company is already strong, Parr said.
The deal, which is subject to customary closing conditions, is expected to be completed by the end of the second quarter, Luxembourg-based ArcelorMittal said.....
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