Mechel, one of the leading Russian mining and metals companies, has confirmed to SteelOrbis that it has applied to Romania's antimonopoly committee for permission to acquire a controlling stake in the local longs (wire rod and debar) and hardware products producer Ductil Steel.
Although, Mechel declined at the current juncture to disclose any particular details regarding the possible deal, the company expects to receive an answer from Romania's antimonopoly committee around November 30, unless the committee has further questions to ask the company.
If Mechel is allowed to go ahead with this project, the company will be able to add a significant asset to its other two Romanian plants - Mechel Campia Turzii and Mechel Targoviste - both of which are specialized in the production of wire rod and hardware products. Thereby, with the acquisition of a third producer of the abovementioned products, Mechel will be able to strengthen its position in both the Romanian and the wider European market for wire rod and hardware products.