Ukraine’s Zaporizhstal reportedly being sold to Russian investors

Friday, 04 June 2010 16:46:10 (GMT+3)   |  
       

According to Ukrainian media reports, the largest Ukrainian steelmaker Zaporizhstal is in the process of being sold to a group of Russian investors represented by Russian state-run bank Vnesheconombank (VEB) for $1.7 billion, but no further details were given.

Earlier, Zaporizhya regional officials said that the sale of the plant to a Ukrainian business group had almost been completed. Ukrainian media then reported that the buyer might be the major Ukrainian financial and industrial holding System Capital Management (SCM) linked to Ukrainian magnate Rinat Akhmetov, who already owns the country's largest steel holding, Metinvest. However, SCM said in a statement that it was not taking part in the deal for the purchase of Zaporizhstal's shares.

In the meantime, the Antimonopoly Committee of Ukraine announced that it was "concerned" by media reports about a change in ownership at Zaporizhstal as well as at another big Ukrainian steel maker Ilyich Iron and Steel Works of Mariupol (Ilyich), which is reported to have been acquired by a Russia metallurgical concern, including Formigos Holding Ltd and Rewein Ltd, while the president of Ukraine has ordered an investigation. "The president has sent out all the necessary instructions, including to law enforcement agencies. I think that we will wrap things up there very soon," Prime Minister Mykola Azarov said.


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