Mergers and acquisitions business dealings
NLMK acquires control over Lipetsk region-based companies Stagdok and Dolomit, covering its needs in flux materials.
NLMK acquires a controlling stake in TMTP for $189 m to facilitate stable exports for NLMK and reduce the cost of port operations.
NLMK acquires control over Stoilensky, one of the largest iron-ore producers in Russia, in order to secure long-term supplies of iron-ore products.
NLMK concludes an agreement to create a joint venture with Duferco Group with an investment of $805.5 m. The joint venture includes steel production and distribution facilities in Europe and USA.
NLMK acquires 100% of VIZ-Steel, the second-largest Russian electrical steel manufacturer, for $550 m. This acquisition was in line with the Group’s strategy of downstream vertical integration, aimed at increasing production volumes of high-value-added products.
NLMK acquires a 100% interest in DanSteel A/S for $104 m. This transaction was in line with NLMK’s strategy of acquiring rolling facilities and developing a portfolio of high-value added products in key sales markets.
In April 2006, NLMK acquires 82.23% of Altai-Koks and 100% of Kuzbass Asset Holdings Limited, Gibraltar, which owns 100% of Russian coal producer Prokopievskugol.
In July 2008, NLMK increases its stake in Altai-Koks to 100%.
The key aim of this transaction was to improve self-sufficiency in coking coal and coke.
January 2006.Приобретение Dansteel A/S
NLMK acquired 100% share of DanSteel A/S, Danish steel-rolling company, for $104 million. The deal was part of the key market rolling-capacity expansion strategy set out to extend the share of HVA products in the company's portfolio.
January 2006.Sale of stake in Lebedinsky GOK
NLMK has sold its stake (11.96%) in Lebedinsky GOK for $400 million. The deal was part of the Group's investment management strategy.
April 2006.Altai-Koks and Prokopyevskugol shares acquisition
In April 2006 NLMK bought 82.23% of Altai-Koks shares and 100% of Kuzbass Asset Holdings Limited, Gibraltar, owning 100% shares of Prokopyevskugol, a Russian coal producer. In July 2008 NLMK increased its share in Altai-Koks to 100%.
July 2006.Acquisition of additional interest in Independent Transport Company (NTK)
In July 2006, NLMK acquired a 30% stake in Independent Transport Company (NTK). After the transaction, NLMK's share reached 100%. Earlier, in 2004, NLMK increased its stake in NTK to 70%. Increase up to 100% was dictated by the previously announced plans to restructure the Group's assets.
August 2006.VIZ-Steel aquisition
NLMK has acquired 100% interest in VIZ-Steel, the second largest producer of electrical steel, for $ 550 million. The deal was part of the Group's vertical integration strategy to tap on the downstream potential and enable HVA production.
September 2006.Sale of KMA Ruda shares
NLMK sold its 92.04% stake in KMA Ruda. The transaction is valued at approximately $ 300 million. 59.99% of the shares sold to JSC "Cox" and 32.04% sold to Lesser Enterprises Limited Company for $ 195.5 million and $ 104.5 million respectively. The sale was made to concentrate all iron ore assets at Stoilensky, NLMK's largest and most efficient iron ore asset.
NLMK acquires a 50%+1 stake in Maxi-Group for approximately $299 million. Acquired assets include a number of facilities that form an integrated production chain, from scrap collection and processing to the production of long products.
NLMK agrees to sell the Prokopievskugol group of companies to a municipal state company representing the city administration of Prokopievsk due to high production costs and the inability to improve profitability without significantly reducing headcount. According to the agreement, the transaction price was $1. Prokopievskugol was initially acquired by NLMK as an integral, conditional part of its acquisition of the Altai-Koks coking facility.
NLMK completes the acquisition of a 100% interest in Beta Steel, a U.S. steel and rolled products manufacturer, for approximately $350 m. The company was later renamed as NLMK Indiana and became part of the NLMK USA division.
NLMK announces the acquisition of a 100% stake in trading companies Novexco Limited (Cyprus) and Novex Trading S.A. (Switzerland). The acquisition price was approximately €77 m. This transaction is in line with the Company’s strategy to establish an international trading department within the Group and is designed to improve control over export sales and further enhance NLMK’s presence in core export markets.
NLMK completes the sale of its stake in Tuapse Seaport to Universal Cargo Logistics Holding B.V. (UCLH) for approximately $254 m.
NLMK acquires VMI Recycling Group for a total of $28 m. The company specialized in collecting and processing ferrous scrap with an annual capacity of up to 500,000 tonnes and operated four sites equipped with modern scrap processing facilities located in the Moscow region.
This acquisition allowed the Company to establish a presence within the important and emerging Moscow scrap collection market which is in close proximity to the Lipetsk site and to NLMK Kaluga, still under construction at that point.
NLMK acquires an electrical steel service center in India with a processing capacities of 15,000 tonnes, providing NLMK with direct access to end users in this growing market.
NLMK consolidates the rolling assets of Steel Invest and Finance, formerly part of the Joint Venture with Duferco Group. The cash consideration for the transaction was approximately $600 m, payable in four equal annual installments.
In August 2011, NLMK announces the creation of its new business divisions - NLMK Europe and NLMK USA, comprising all of the Group’s international assets, including the Steel Invest and Finance rolling companies.
NLMK Board of Directors agrees to sell Independent Transportation Company LLC (NTK) to UCL Rail B.V., a subsidiary of Universal Cargo Logistics Holding B.V. (UCL Holding), for $325 m.
This divestiture was in line with NLMK’s previously announced strategy aimed at streamlining the Company’s asset structure. NLMK’s NTK stake was classified as a non-core asset by NLMK Board of Directors’ Strategic Planning Committee in April 2010.
NLMK wins the right to develop the third mining area in the Usinsk coal deposit (Usinsk-3) located in the north of the Komi Republic. NLMK is selected following a competition organized by the Subsoil Agency of the Komi Republic. The license fee was 900 million rubles.
The Usinsk-3 deposit has more than 227 million tonnes of on-balance reserves of high-quality hard coking coal (grades Zh and KZh, Russian categories of reserves C1+C2).
As part of an optimization process at its European operations, NLMK brings in SOGEPA (Société Wallonne de Gestion et de Participations S.A.), a Belgian state-owned company, as an investor into NLMK Europe. SOGEPA acquires 20.5% of NLMK Belgium Holdings S.A. (NBH), which comprises NLMK Europe’s operating and trading companies excluding NLMK Dansteel, for €91.1 m.
NLMK Group and the Walloon Region-owned SOGEPA (Societe Wallonne de Gestion et de Participations S.A.) sign an agreement providing for an increase of SOGEPA’s stake in NLMK Belgium Holdings (NBH) and joint management of NBH’s businesses. Under the agreement, SOGEPA’s interest in NBH increases from 20.5% to 49%.