Judge Rules in Favor of Steel Dynamics

A state of Indiana Superior Court determined that Steel Dynamics can move forward with its announced acquisition of the idled Qualitech steel mill, located in Pittsboro, Ind. The decision removes a temporary restraining order that was issued earlier this month preventing Steel Dynamics from closing its $45 million purchase of the steel mill.

The decision ruled against Nucor, which earlier claimed it had reached an agreement to purchase Qualitech’s mill for $37 million. The North Carolina-based minimill giant had announced this past January that it had reached an agreement to acquire the mill, although a number of extensions prevented the company from closing the acquisition. Nucor said it would appeal the ruling.

However, Nucor claims that Qualitech delayed the closing of the deal past the deadline while secretly negotiating with a second buyer.

Countering the claim, Qualitech said that Nucor attempted to renegotiate the price as the extension continued, with the price falling to $32 million, according to the Indianapolis Star.

According to Steel Dynamics, as the extensions expired the company was able to begin negotiations to acquire Qualitech.

In the ruling, made Aug. 20^th, the judge in the case denied Nucor's request for an injunction to stop Steel Dynamics until a trial on their dispute could be scheduled. Freese wrote that he believed that Nucor had little chance of prevailing at a trial.