London-listed resources company Astra Resources has announced that it has signed a memorandum of understanding with Germany-based Aicher Group to purchase Achier Group's Hungarian assets including the Ózd Steel Works.
The acquisition will be funded by Astra's upcoming initial public offering. The deal will enable Astra to acquire an important manufacturing asset within the European Union that will place Astra "in a prime position to be able to supply much sought-after and profitable premium quality steels to its customers, and also to other world markets". Regarding the assets to be purchased, Astra stated that "the planned operating costs will compare more than favorably with current low-cost steel producers elsewhere in the world".
According to Astra's announcement, the deal has strategic importance to both companies, enabling Aicher Group to concentrate on its key operations in other parts of Europe.