PRESS: Russia’s MMK seeks merger with domestic steel firm

MOSCOW, May 12 (PRIME) -- Russia’s Magnitogorsk Iron and Steel Works (MMK) is considering a merger with one of domestic steel firms, business daily Vedomosti reported Thursday citing the company’s April presentation.

MMK was evaluating prospects of a merger with steelmaker Novolipetsk Steel (NLMK), Severstal, Evraz, TMK, Chelyabinsk Pipe-Rolling Plant (ChelPipe), Metalloinvest and has estimated that a merger with Severstal would give the biggest synergy effect, the daily said.

“There are no talks over the sale of the business or a merger. The presentation for investors provides a model, which has purely expert, information character,” a representative of MMK told the daily. Other steel producers declined to comment.

Two investment bankers familiar with the situation said that MMK had already proposed a merger to Severstal.

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