Nucor Set to Buy Birmingham Steel for $615 Million

It was announced to day that Nucor, America’s second largest steel manufacturer had entered into an exclusive, but non-binding agreement to purchase Birmingham Steel for $615 million. This follows an offer from Nucor to buy the financially embattled Birmingham steel for $500 million in February.

While details are yet to be finalised, one condition that has been laid out by Nucor, is that Birmingham must file for Chapter 11 bankruptcy before the sale can proceed. This is due to the fact that the price offered by Nucor is not enough to cover debts accrued by Birmingham.

A decision as to whether or not the deal will go ahead is due to issued by the end of the month. Birmingham are said to be exploring other strategic alternatives, while negotiating the Nucor deal, although the Nucor bid would appear to be the most favoured alternative.

for more information on steel manufacture click here.