The Antimonopoly Committee of Ukraine has given permission to the Netherlands-based private limited liability company Metinvest B.V. to acquire more than 50 percent of shares in the Ukrainian steel producer Makeyevka Iron and Steel Works (Makeevka), located in the Donetsk region, and also more than 50 percent of shares in the Bulgarian steel producer Promet Steel, located in Burgas city.
Accordingly, the acquisition of shares will provide the buyer with over 50 percent of votes on the boards of directors of the enterprises in question.
As SteelOrbis previously reported, in September 2007 the Ukrainian management company System Capital Management (SCM), a mother company of Metinvest Holding, and Smart-Holding defined a format for integration of their mining and metals assets within Metinvest. As a result of the merger, SCM transferred 25 percent + 1 share in Metinvest to Smart, while Smart-Holding transferred three companies to Metinvest Group, i.e. Inguletskiy GOK, Makeyevka Iron and Steel Works, and Promet Steel. The merger is expected to be completed in 2009, while the approval of the EU antitrust authorities for the acquisition of Promet Steel is expected to be obtained soon.
The shareholders of Metinvest Group are SCM (75 percent) and Smart Holding (25 percent), which manage the company on the principle of partnership. Metinvest Holding is the managing company of Metinvest Group and is owned by both Metinvest B.V., which holds 51.15 percent, and SCM, which holds 48.85 percent. Metinvest B.V. is 100 percent-owned by SCM (Cyprus), a subsidiary of SCM group.