ArcelorMittal Terminates Sale of Sparrows Point Steel Mill

ArcelorMittal has terminated its agreement with E2 Acquisition Corporation for the sale of ArcelorMittal USA’s Sparrows Point, Md., 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 Inc. and Wheeling-Pittsburgh Corp.

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. 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.

ArcelorMittal will continue to operate the plant during the divestiture process.

Sparrows Point is an integrated steel-making facility capable of producing 3.9 million tons of raw steel a year. 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.