MOSCOW, Sep 29 (PRIME) -- Magnitogorsk Iron and Steel Works (MMK) intends to acquire Russia’s Perm Region-based Lysva Metallurgic Plant, Kommersant business daily reported on Friday citing sources familiar with the situation.
The sources said that the deal may envisage assignment of the facility’s 5 billion ruble debt. A source said that the companies have already signed preliminary agreements and that MMK has submitted a request to the Federal Antimonopoly Service. Another source said that a due diligence procedure is underway.
Head of the Federal Antimonopoly Service’s industry control department Nelly Galimkhanova confirmed that the watchdog received the request on August 17, but prolonged its consideration to provide a market competition analysis.
CEO of Lysva Metallurgical Company, the owner of Lysva Metallurgic Plant, declined to comment.
An MMK spokesperson said that the company “regularly monitors the M&A market and… is ready to discuss acquisitions of promising assets able to give synergy.”
The sources also said that the facility had also been considered by steelmakers Novolipetsk Steel (NLMK) and Severstal, but they expressed no interest. The companies declined to comment.
(58.4255 rubles – U.S. $1)
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