Central Europe's leading coking coal producer, Czech-based New World Resources N.V. (NWR), has reviewed its decision to proceed with the proposed acquisition of a 24.99 percent stake in the UK-based company Ferrexpo, whose main interests are in Ukrainian iron ore. In a statement on its decision, NWR cited, "the current challenging environment for the steel and coal sectors and continuing low visibility regarding the global economic conditions for the remainder of 2009."
As SteelOrbis previously reported, in October 2008 NWR accepted the offer of the sale of the stake in question from its majority shareholder, RPG Industries (RPGI), and thus intended to buy all of RPGI's 147.16 million shares in Ferrexpo, paying 86 pence per share, reaching a total cost of £126.6 million (€163.3 million).
"Nevertheless, we continue to believe that the long-term outlook for both coking coal and iron ore remains attractive in the region and we will continue to work closely with RPGI and Ferrexpo to explore all future strategic options," the NWR statement on its latest decision read.