U.S. steelmaker Nucor Corp. (NYSE: NUE) said Friday it will buy Skyline Steel LLC and its subsidiaries from Luxembourg's mining and steel company ArcelorMittal (NYSE: MT) for $605 million.
Parsippany, N.J.-based Skyline generated $873 million in revenue last year as a key distributor of foundation and piling products in the North America and Caribbean markets. It is a major consumer of H-piling and hot-rolled sheet piling from the Nucor-Yamato Steel Co., a joint venture between Charlotte, N.C.-based Nucor and Yamato Kogyo Co. Ltd. (Tokyo: 5444).
As the largest supplier to Skyline Steel, Nucor was a natural buyer for this subsidiary business, Aditya Mittal, ArcelorMittal's chief financial officer, said in a statement following the announcement of the purchase.
The deal has yet to be cleared by regulators, but is expected to close this quarter. Nucor generated $20 billion in revenue in the last fiscal year.
Skyline provides steel piling for numerous applications, including marine construction, bridges and highways, storm protection, and environmental containment.
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ArcelorMittal is the world's largest steelmaker, accounting for 6 percent of global production, but seven of its 25 European furnaces are currently idle because of the euro-zone crisis, according to Dow Jones Newswires.
On Friday, Nucor shares closed down 40 cents, or 1.15 percent, to $34.39.