Polish steel group Alchemia has completed the acquisition of the seamless pipe plant Zaklad Produkcji Rur from ISD Huta Czestochowa, the Poland-based steelmaking subsidiary of the Ukrainian steel group Industrial Union of Donbass (ISD).
The value of the deal is PLN 101.5 million ($33.6 million). In particular, the assets of the plant were estimated at PLN 85 million ($28.1 million), its shares were estimated at PLN 15 million ($5 million), and ISD's investment was estimated at PLN 1.5 million ($0.5 million).
The transaction follows Alchemia's receipt of acquisition permissions from antimonopoly agencies in Poland and Germany in mid-December 2010.
As SteelOrbis previously reported, on September 14, 2010, Alchemia and ISD Huta Czestochowa signed a preliminary purchase agreement, which was in line with ISD Poland's restructuring program for sale of the asset which does not correspond to its core business. On the other hand, the newly acquired seamless pipe production plant Zaklad Produkcji Rur is to allow Alchemia to extend the range of its products offered for the oil and gas industry. The Alchemia group already owns a seamless pipe plant in Poland, i.e., Huta Batory.