Russia’s fourth largest steelmaker Novolipetsk Steel (NLMK) has signed a binding agreement to buy a 50 percent interest in Steel Invest and Finance (SIF) from Italy’s Duferco for $600 million to become a 100 percent owner of the two companies’ joint venture, NLMK said in a statement on Thursday.
The cash will be paid in four equal annual installments from NLMK’s own funds.
The acquisition is subject to customary regulatory approvals in the European Union and is expected to be closed in the second quarter of 2011.
“The transaction will significantly enhance NLMK’s international downstream portfolio through the complete integration of seven rolling and several distribution facilities with a total rolling capacity of over 5.5 million tons and 2010 total output of 3.2 million tons,” the firm said.
As part of the deal, SIF will transfer some non-core assets to Duferco and also cancel about 230 million euros of loans to Duferco shareholders, NLMK said.
MOSCOW, April 21 (RIA Novosti)