Severstal gets EC’s go-ahead for Lucchini acquisition
The European Commission (EC) yesterday officially approved Russian steel giant Severstal's acquisition of 62% stake in Italian steel maker Lucchini. The EC found that the deal complied with EU antitrust laws because there were no indications that it would stifle competition in the European market. Lucchini currently carries a debt load of €1.18 billion. The merger is designed to rescue the company from bankruptcy. Severstal will pay €430 million for Lucchini's shares. Severstal authorities say that they are currently examining the situation at Lucchini. The Russian steelmaker intends to overhaul some of the machinery at various plants.