"This transaction represents yet another important step in the implementation of our long-term strategy to develop higher value downstream markets," Evraz's Chief Executive Officer Alexander Frolov said.
Evraz Group, a leading Russian steel and mining company, said the offer price of $23.5 per share represented a premium of 19.1% to Claymont Steel's three month volume weighted average stock price.
Under the deal, Titan will make a cash tender offer for all Claymont Steel common stock shares and then merge with the U.S. firm. Claymont Steel's board of directors unanimously recommended that its shareholders accept the offer, Evraz said in a statement.
Claymont Steel, located in Claymont, Delaware, is a carbon plate producer with an annual capacity of over 500,000 tons. It manufactures and sells custom-order discrete steel plate in the United States and Canada.
