Severstal to buy U.S. coal miner PBS

In a move that points toward closer workings between suppliers and steel manufacturers, steelmaker OAO Severstal will buy coal-mining company PBS Coals Corp. for $1.3 billion including the assumption of $40 million to $50 million in debt. Severstal's new acquisition will provide the company with 40% to 50% of its coal needs for metallurgical production in the U.S.