Ispat to Buy Inland Steel Unit for $1.43 Billion

Inland Steel Co., the U.S.’ sixth-largest steelmaker, is being sold to Ispat International of the Netherlands for $1.43 billion in cash and assumed debt. Chicago-based Inland Steel, a unit of Inland Steel Industries Inc., said the combined operations of Inland and Ispat would create the world’s eighth-largest steel producer, shipping more than 12.5 million tons of steel annually, with revenue exceeding $4.6 billion. News of the acquisition comes as the U.S. steel industry is under heavy pressure to consolidate in order to compete in an increasingly global market. Under terms of the deal, Ispat would pay $650 million cash for Inland common stock shares and $238.2 million for preferred stock held by the company, and it would assume $539 million in debt. The United Steelworkers of America, under a union contract provision, also would get the right to make its own offer to purchase Inland. The deal is expected to close by fall. In New York Stock Exchange trading, Inland Steel shares jumped $4.31 to close at $27.69; Ispat shares rose $1.25 to close at $26.