Evraz to sell North American branch to Atlas investment fund, parties plan to sign deal in H2

MOSCOW. June 30 (Interfax) - Evraz has obtained an OFSI license to sell its North American branch to the Atlas Holdings investment fund, with plans to sign the deal in the second half of 2025, the company said in a statement.

After the license was issued on June 26, the company signed the final deal with Atlas Holdings to sell a 100% stake in both Evraz holding companies in North America, Evraz Inc. NA Canada and Evraz Inc. NA, on Friday, June 27.

The terms of the sale include an advance payment of $50 million and a deferred payment of up to $450 million. The company said that the latter was "payable subject to the achievement of certain milestones by the North America business following the closing of the sale".

In May 2022, Evraz North America parent company Evraz Plc was included in the UK's sanctions list and simultaneously issued a general OFSI license allowing Evraz NA to continue its operations. Since then, the North American branch has functioned separately from Evraz Plc as a wholly independent organization.

Evraz announced at the end of summer in 2022 that it had put its North American asset up for sale.

Evraz North America occupies around 44% of the North American rail product market and around a third of the large-diameter pipe production market. The company's U.S. production sites are in Portland and Pueblo and its Canadian production sites in Regina, Calgary and Red Deer. Evraz NA also has scrap metal processing assets in Western Canada, North Dakota and Colorado.