NLMK acquires trading companies

Friday, 25 January 2008 14:35:04 (GMT+3)   |  
       

The Russian steelmaker Novolipetsk Steel (NLMK) has announced that its 100 percent owned subsidiary, the Netherlands-based NLMK International BV, has acquired 100 percent stakes in two trading companies - i.e. in Cyprus-registered Novexco Limited and in Switzerland-based Novex Trading S.A., from the US-based United Steel Group (USG) for €77 million.

In 2007, Novex Trading S.A. and Novexco Limited bought the trading business of Steelco Mediterranean Trading Ltd., Tuscany Intertrade (UK) and Moorfield Commodities Company, the international traders which were the exclusive export traders of NLMK's products for several years.

The current acquisition is in line with NLMK's strategy to establish its own international trading base, designed for better control of the company's export sales and for providing better services for NLMK's customers.

The deal in question is subject to regulatory approval.