Ruling kills Mittal's interest in selling Weirton mill

CHARLESTON, W.Va. (AP) -- A deal to sell the Weirton division of Mittal Steel Co. to Illinois-based Esmark Inc. is dead, Esmark President Craig Bouchard told The Associated Press on Thursday.
Esmark, a steel supplier that has acquired 10 companies since its founding in 2003, said last year it wanted to buy the former Weirton Steel when it appeared Mittal might be able to sell the mill to secure U.S. regulatory approval for merger with Arcelor SA of Luxembourg.
In January, Mittal and Esmark announced they had signed a memorandum of understanding but did not disclose the price.
But earlier this week, the U.S. Justice Department ordered Mittal to sell its Sparrows Point mill in Maryland rather than West Virginia-based Weirton, saying the sale of the mill near Baltimore was the best way to prevent a monopoly on the eastern U.S. market for tin-plated steel.
Committed to West Virginia
The government decree did not prevent Mittal from making a separate deal to shed Weirton, but Bouchard said the company told him Wednesday night that it would keep the West Virginia operations.
"As of right now, our deal with Mittal for Weirton is dead," he said.
Mittal spokesman William Steers said the memorandum of understanding is no longer valid because it was conditioned on the Justice Department's acceptance of the sale as a remedy to the antitrust concerns.
"At this point in time, we're focused on developing a global packaging strategy, and Weirton will be part of that," Steers said. "We want to focus on seeing whether we can improve its profitability, retain that business and develop its prospects."
The 1,250-member Independent Steelworkers Union said it has been assured Mittal "remains committed" to keeping a mill in West Virginia.
"The ISU leadership will continue to explore all ideas and strategies that will benefit the union membership," said spokesman Dave Gossett. "The men and women of Weirton are survivors and the steel business, with the cooperation of Mittal Steel USA, will remain alive and well in Weirton."