US Steel Kosice completed acquisition of Sartid
As previously reported by SteelOrbis, the integrated steel mill Sartid, located in Smederevo, Belgrade is taken over by the Slovakian mill
US Steel Kosice (USSK) against $25 million. The acquisition was completed back in March.
According to reports, the material stocked in the warehouses for sale was worth more than this amount. Except for the domestically sold 3'000 mts, the total
production of 30'000 mts will be internationally marketed.
The payment structure contains
distribution in 5 years and Sartid's old debts are left to be covered up by the government, the former owner of the company. Sartid has debt to various parties such as electricity,
iron ore suppliers and to customers.
It is commented that, the reason for the government to keep the debt burden of Sartid could be due to the existence of some parallel deals with
US Steel at the stage of signing the contract, in the form of future
investments, political support and similar issues.