【Ferro-alloys.com】U.S. Steel (X.US) announced today that it has agreed to sell its subsidiary Transtar to a subsidiary of Fortress Transportation and Infrastructure Investors LLC (FTAI.US) for $640 million. After obtaining regulatory approval, the transaction is expected to be completed in the third quarter of 2021.
It is reported that after the transaction is completed, U.S. Steel will obtain key strategic benefits through the transaction, including: being able to further focus the company's operations on its core mining and steel manufacturing business; the new financial structure will be monetized through non-core assets To create incremental value for the company’s shareholders, the proceeds from the sale will be used to further strengthen the company’s balance sheet, including deleveraging; and a 15-year contract to maintain the operation of Transtar’s six railways.
David B. Burritt, President and CEO of U.S. Steel, said: "By selling Transtar to an experienced rail operator, the company is able to better focus on the broader'Best for All' strategy; at the same time, a strong partnership with FTAI The relationship will ensure that the company’s steelmaking facilities continue to be supported by predictable and cost-effective rail operations."