Krivorozhstal tender creates disappointment
The tender held for the sale of 93.02% share in Ukrainian steel mill Krivorozhstal ended yesterday. The State Property Fund, rejecting the bid of $1.5 billion submitted by LNM and
US Steel consortium and bid of $1.2 billion submitted by Russian mill
Severstal, sold the mill to Ukrainian firm Investment and Metallurgical Union, which submitted a bid of $800 million.
It was previously announced that domestic bidders would be preferred in the tender as there was the condition of the tender, stating that a foreign bidder should be consumer of Ukrainian coke for the past three years. Another Ukrainian firm in the tender was Industrial Union of Donbass, which submitted a bid of $750 million.
The LNM Group and
US Steel have recently announced that they are disappointed with the result of the tender. LNM Group stated that,
Ukraine has missed a great opportunity by ignoring foreign bidders.