On August 18, the Ukrainian mining and steel producing company Metinvest Holding (Metinvest) announced that it has obtained formal approval from the Antimonopoly Committee of
Ukraine (AMCU) for the acquisition of newly issued shares of the Ukrainian steelmaker
Ilyich Iron and Steel Works of Mariupol (
Ilyich), thereby granting more than 50 percent of voting rights in the managerial body of this company.
As SteelOrbis previously reported, in early July this year Metinvest had announced its decision to combine its assets with
Ilyich, with its share in this partnership comprising 75 percent on completion of the integration process, whereas 25 percent would remain under control of
Ilyich under the leadership of the plant's current CEO Vladimir Boyko.
The AMCU said that the united company will have a considerable share in the domestic steel products market, with the approval for the merger being granted under a number of terms, specifically, that the parties should provide settled quantities of shipments to consumers of common limestone, dolomitised limestone, and hot rolled flat steel products. The AMCU requires half-year reports about the fulfillment of these terms starting from January 2011.
Commenting on the issue, AMCU chairman Alexey Kostusev said, "I believe
Ukraine gets a powerful player in the international market as a consequence of the merger. And to minimize possible negative impact on competition in the local market we have imposed definite terms and will strictly control their fulfillment."