[ferro-alloys.com]Big River Steel is no longer entertaining acquisition offers, though the company is open to exploring joint-venture opportunities, a spokeswoman for the company confirmed Wednesday.
Speculation around Big River's potential acquisition picked up this summer as a number of US competitors and foreign mills were said to be showing interest in the privately held company. Industry analysts expected that the company's valuation could top $2 billion, marking the most significant deal in the US steel industry in the last five years.
"Big River Steel's owners came together to build a growth platform in the steel industry through greenfield projects and bold acquisitions and that is what we intend to do," said spokeswoman Patty Rioux. "While the valuations surrounding our company were flattering, we see a very bright future for our employees, suppliers and customers as we grow and expand our company."
Big River, which began operating its sheet mill in Osceola, Arkansas, in 2017, is open to bringing in a joint venture partner with expertise in making automotive-grade, advanced high-strength steels and electrical steels, the spokesperson said. In its first year of operation, Big River produced 1.3 million st of steel.
In June, Big River announced it was moving ahead with plans to spend $1.2 billion to double the Osceola mill's capacity to 3.3 million st by late 2020. In April the company signed an option agreement 800 acres of land in Brownsville, Texas, which could be the site of a second steel mill.
(G&P Global Platts)