Mechel to buy DEMZ for $537 million

The Russian mining and steel producing group Mechel is reported to be buying Donetsk Electrometallurgical plant (DEMZ) for $537 million. Mechel has supervised operations of DEMZ since 2010, but did not finalize transfer of shares of DEMZ due to its liabilities to the banks. The purchase of DEMZ will allow Mechel to increase crude steel production and supply its rolling facilities.