CMC is the preferred bidder in Huta Zawiercie’s acquisition
Commercial Metals Co. (CMC) located in Irving, Texas has made a statement that its subsidiary Commercial Metals AG has been selected as the preferred bidder to purchase all the shares of
Poland's Huta Zawiercie SA. Impexmetal SA located in Warsaw,
Poland owns 71.1% of the outstanding shares of Huta Zawiercie and these are controlled by Polish treasury.
US'
longs producer CMC has competed with Arcelor, LMN Holdings and two local Polish companies during the negotiations of purchasing stakes of Huta Zawiercie.
Huta Zawiercie operates a steel minimill similar to those operated domestically by CMC. Furthermore, the company's foreseen capacity is 1 million tons with two electric arc furnaces (EAF). The company produces mainly
rebar and
wire rod at two separate rolling mills.
CMC's authorities made a statement that, Huta Zawiercie provided a unique oppurtunity for investment in an updated facility with producing products which are familiar for the growing Polish and European markets.
If a transaction occurs, the purchase price of the shares are expected to form as a cash payment.
The acquisition is aimed to complete during July, after receiving the regulatory approvals.