The Russian steel producing and mining company Evraz Group (Evraz) has announced its decision to terminate the merger negotiations between the company's coal subsidiaries Yuzhkuzbassugol and Raspadskaya, which began in June 2007.
In a statement on the issue, Evraz stated that the merger between these two companies is not in the best interests of its shareholders.
Due to the favorable market conditions and recent developments at Evraz Group, especially the acquisition of several assets in Ukraine, Evraz has concluded that the further integration of Yuzhkuzbassugol with the company's steel facilities and Ukraine-based coke assets will show more immediate benefits and long-term synergies than the merger of the coal company in question with Raspadskaya.