Russian steelmaker Novolipetsk Steel (NLMK) has announced the completion of the previously announced deal to purchase the remaining 50 percent interest in Steel Invest and Finance (SIF) from Duferco Group. The transaction will result in SIF becoming a 100 percent-owned indirect subsidiary of NLMK. The cash consideration for the transaction is around $600 million, payable in four equal annual installments. NLMK will finance the transaction out of existing funds.
As part of the transaction, SIF has transferred to Duferco Group certain non-core assets consisting of long product operations with an annual capacity of 300,000 mt and Belgian steelmaking operations with a capacity of three million mt per year.
The acquired SIF rolling assets are consolidated on NLMK's balance sheet from July 1, 2011. The EU regulatory authorities have already granted clearance for this acquisition.