Switzerland-based steelmaker Swiss Steel Group has announced that its subsidiary special steel producer Ascometal France Holding has decided not to exercise the option-to-purchase agreement signed with Italy-based long steel producer Acciaierie Venete regarding the plants located in Hagondange, Custines and Le Marais, as well as the CREAS research center. The company has not disclosed the reason for its decision.
The acquisition of the French sites was going to enable Acciaierie Venete to consolidate its position, while increasing its production capacity outside Italy, as SteelOrbis previously reported.
In addition, following termination of the negotiations with Acciaierie Venete, Ascometal’s management examined all strategic options and has decided to seek court protection by requesting the opening of judicial reorganization proceedings. The aim of these procedures would be to preserve the cash position of the Ascometal companies to allow time to find buyers for each of the sites.