Prague inks deal with Evraz for Vitkovice sale

Prague inks deal with Evraz for Vitkovice sale

Czech government officials reached an agreement with Russian steel producer EvrazHolding for the sale of the Czech Republic's largest plate producer, Vitkovice Steel (VS). In line with the deal, EvrazHolding will acquire a 99 percent stake in Vitkovice for CZK 7.05 billion (approx. $295 million). Czech Deputy Industry and Trade Minister Martin Pecina said that the acquisition marks the first privatization tender won by a Russian company. The deal is subject to the approval of the European Commission (EC), which must confirm that the deal is in line with the state aid and rivals' alliance regulations set by the EC. The acquisition process is expected to be completed by late October/early November. Through this acquisition, EvrazHolding aims to strengthen its position in the Eastern and Central European markets.