ArcelorMittal and Metinvest may show interest in Serbian steel plant

Thursday, 02 February 2012 17:42:57 (GMT+3)   |  
       

Luxembourg-based global steel giant ArcelorMittal and Ukrainian metallurgical company Metinvest could be interested in taking over the Smederevo-based former US Steel Serbia which earlier this week was sold by US Steel to the Serbian government for a symbolic $1, according to reports in the local Serbian media.

In the case of ArcelorMittal, US Steel offered two months ago to sell the Smederevo-based plant to ArcelorMittal for $300 million, but ArcelorMittal was prepared to give only $23 million, matching the amount the Pittsburgh-based firm paid for the plant when it acquired it back in 2003.

As for Metinvest, according to unofficial sources a close associate of Metinvest owner Rinat Akhmetov was in Belgrade on January 29 and met with Serbian government officials to discuss buying the mill.

The only certainty is that the Serbian government does not want to operate the company. Indeed, after Serbia bought back the mill from US Steel, Serbian Prime Minister Mirko Cvetkovic told local news agencies that the government ultimately hoped to find a new buyer for the mill. "We have no intention to remain the owners in a long run," Cvetkovic said, adding, "We plan to start looking for a strategic partner."