Russia’s Mechel to Sell US Business

Reuters reported that Mechel OAO (MCX:MTLR,NYSE:MTL), Russia’s biggest producer of coal for the steel industry, has hired JPMorgan Chase & Co. (NYSE:JPM) to sell Mechel Bluestone, its United States business. The move is aimed at helping the company cut debts of over $9 billion.

As quoted in the market news:

The sale of the U.S. asset is unlikely to be easy at a time when major mining companies are putting a host of assets on the market to slim down and boost profitability.

One of the sources suggested a price tag for U.S. business in the current market would be roughly half the original value.

Mechel Bluestone is facing an oversupplied market in Asia and falling exports from the United States. It was forced to idle U.S. mines at the end of last year due to poor market conditions, restarting major operations earlier this year.

Click here to read the full Reuters report.