NLMK terminates agreement to acquire John Maneely

Monday, 17 November 2008 15:00:44 (GMT+3)   |  
       

The Russian steelmaker Novolipetsk Steel (NLMK) has announced that it has terminated the agreement and plan of merger with US-based DBO Holdings, Inc. for the acquisition of John Maneely Company (JMC), the largest independent tubular manufacturer in North America, from The Carlyle Group.

Moreover, NLMK has also terminated the related $2.0 billion bridge loan facility it had entered into to finance the acquisition in part.

As SteelOrbis previously reported, on August 12, 2008, NLMK signed a definitive agreement with a shareholder group including global private equity firm The Carlyle Group and the Zekelman family for the acquisition of JMC for an estimated US$3.53 billion. The acquisition was to be closed by 29 September. Later NLMK failed to close the transaction in a timely manner and, on October 15, DBO Holdings, Inc. filed a lawsuit against NLMK alleging that the Russian steelmaker had breached the terms of its merger agreement. DBO Holdings sought to obtain damages in an amount to be determined by the court, an order to compel NLMK to fulfill its obligations under the merger agreement, and an award of costs and such other relief as the court would grant.

The litigation brought by DBO Holdings relating to the acquisition continues.


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