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Russia's Mechel finalizes purchase of U.S.' Bluestone Coal

17:10 08/05/2009
MOSCOW, May 8 (RIA Novosti) - Mechel has finalized a deal to buy the U.S.' coal producer Bluestone for $436 million, the Russian steel giant said in a news release on Friday.

Mechel signed the final agreement to buy the U.S. privately-owned company on April 22.

The $436 million sum includes $36 million in interest payments, Mechel's $83.3 million-worth of preferred shares, plus the obligation to pay off around $132 million in company debts.

However, the deal does not include other businesses run by the owners of Bluestone Coal Corp., which include steam coal operations in Kentucky and non-coal activities.

As part of the deal the parties are expected to float preferred shares as soon as the market conditions are favorable.

Bluestone, a New York-traded company controlled by billionaire Igor Zyuzin, produced 2.8 million metric tons of hard coking coal in 2008, with total sales of some $327 million.

Mechel is one of the Russia's leading companies, uniting producers of coal, iron ore, concentrate, nickel, steel, rolled products, hardware, and thermal and electric power.

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