Following last week's European Commission (EC) clearance for the creation of a joint venture (JV) between Russian mill Novolipetsk Steel (
NLMK) and
Guernsey-based Duferco, the concerned companies announced this week the signing of a definitive agreement on the matter.
According to the signed document,
NLMK and Duferco will each own a 50 percent stake in the newly founded
Luxembourg-based JV, Steel Invest & Finance SA. The new joint venture company will hold major stocks in 22 Duferco-owned companies in
Europe and USA.
As for the
NLMK stake in the JV, the company will purchase its 50 percent stake at a cost of approximately $805 million.
In addition,
NLMK and Duferco have agreed to invest approximately Euro 375 million in a technical update and expansion program for the JV companies.