The Ukrainian steel producer Metinvest has bought 100 percent stakes in European plate producers Italian Trametal SpA and UK-based Spartan UK from the Malacalza group for an undisclosed amount.
Approval of the deal from the EU's competition authorities is expected within 60 days, while the buyout transactions for these companies are planned to be completed by the end of 2007.
Upon the completion of the transactions, Metinvest plans to unite Trametal and Spartan UK with its other European subsidiary Verona-based Ferriera Valsider SpA to create a single company with an annual production capacity of one million metric tons of plates in the European market.
In 2006, Trametal and Spartan UK produced a combined total of more than 536,000 metric tons of plates.
Commenting on Metinvest's acquisition, the company's general director Mr. Igor Syry stated, "We believe that Trametal and Spartan perfectly fit into our long-term strategy of producing more value-added products and improving the company's industrial balance".
In addition, Mr. Syry named Italy as a key market for his company.