NLMK to buy DanSteel

NLMK to buy DanSteel

Russian Novolipetsk Steel (NLMK) is planning to buy Danish steel manufacturer DanSteel A/S. According to an announcement by NLMK, the company will pay $104 million for the takeover, all to be paid from its existing funds. DanSteel A/S is currently controlled by Vladimir Lisin, the majority shareholder of NLMK. NLMK has recently taken over KMA Ruda, an iron ore mining company 350 km away from NLMK's production facilities in Lipetsk. Meanwhile, the company sold its 12 percent interest in Russian iron ore mining and processing company Lebedinsky GOK. DanSteel produces plates; mainly structural steel, shipbuilding steel and steel for boilers and pressure vessels. It has been a major slab supplier for NLMK since 2002. DanSteel's net revenue for 2005 is estimated over DKK 2 billion ($324 million).