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U.S. Steel seeks STB approval to acquire National Steel's short line

United States Steel Corp. recently filed a notice of exemption with Surface Transportation Board to acquire Delray Connecting Railroad Co. from National Steel Corp.

On Jan. 9, U.S. Steel reached an agreement with National Steel to acquire substantially all of its steelmaking and finishing assets for $950 million, and the assumption of $200 million in liabilities. The deal also included National Steel subsidiary Delray Connecting Railroad, a 15-mile Detroit-based short line.

U.S. Steel owns Transtar Inc., a holding company that operates the 186-mile Elgin, Joliet & Eastern Railway Co., 144-mile Union Railroad Co., 84-mile Birmingham Southern Railroad Co., 23-mile Lake Terminal Railroad Co. and 15-mile McKeesport Connecting Railroad Co.

In its STB filing, the steelmaker states that Delray Connecting Railroad and Transtar's five railroads don't connect, and that the transaction doesn't involve a Class I, exempting the deal from prior federal approval requirements.

Early in the second quarter, U.S. Steel and National Steel expect to finalize the transaction, under which U. S. Steel would acquire two integrated steel plants in Ecorse and River Rouge, Mich., a steel plant in Granite City, Ill., and a finishing facility in Portage, Ind.

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More News from 2/19/2003