Leading Russian steelmaker NLMK has signed definitive agreements to purchase a 50 percent interest in Steel Invest and Finance (SIF) from Duferco Group (Duferco) for an all-cash consideration of around $600 million, payable in four equal annual installments. The transaction will result in SIF becoming a 100 percent-owned subsidiary of NLMK. NLMK will finance the transaction out of existing cash funds. The transaction is subject to customary regulatory approvals in the EU and is expected to close in Q2 2011.
The transaction will significantly enhance NLMK's international downstream portfolio through the complete integration of seven rolling and several distribution facilities with total rolling capacity of over 5.5 million mt per year and 2010 combined output of 3.2 million mt.