Turkish steelmaker Tosyali is reported to be in talks for the acquisition of at least a 49 percent stake in the Turkey-based flat rolled steelmaker MMK Metalurji, part of Russia's third largest steelmaker Magnitogorsk Iron and Steel Works (MMK).
While market insiders have not provided any information regarding the possible consideration for the stake purchase, both Tosyali and MMK Metalurji were not available for an official comment at the time of publishing.
MMK Metalurji, previously known as MMK-Atakas Metalurji San. Tic ve Liman Isletmeciligi A.Ş. (MMK-Atakas), was a joint venture established in 2007 by Turkish investor Atakas Sirketler Grubu and Russia-based MMK. In March 2011, MMK acquired Atakas' 50 percent stake in the joint venture for $485 million, increasing its own stake to 100 percent.
MMK Metalurji operates with an annual capacity of 2.5 million mt of crude steel, 2.3 million mt of hot rolled steel, 1 million mt of cold rolled steel, 1.2 million mt of pickled steel, 900,000 mt of galvanized steel and 400,000 mt of coated steel at its Iskenderun and Gebze plants, while Tosyali produces billets, pipes and a wide range of long steel products, in addition to its hot rolled coil production commissioned in Osmaniye.