On this page we provide an overview of our major acquisitions and divestments since 2004. You may refer to our Annual reports for a more detailed description of the transactions.

NLMK completed the acquisition of a 100% interest in Beta Steel, a U.S. hot-rolled steel producer, from a group of private shareholders for an all cash consideration of USD350 million, on a debt free, cash free basis. The purchase price has been reduced from the original level of USD400 million by USD50 million. Beta Steel operates an Electric Arc Furnace (EAF) melt shop of 700,000  tpa capacity and a hot strip rolling mill of 1,100,000  tpa capacity.  In FY2007, the company’s sales volume reached 547,000 metric tonnes, revenues were USD324 million, with EBITDA of USD21 million. The transaction was financed from existing cash funds.

Press-release

January
Acquisition of  international steel trading facilities
Novolipetsk Steel  agreed to acquire through its 100% owned subsidiary, NLMK International BV (Netherlands), a 100% stake in Novexco (Cyprus) Limited and 100% of Novex Trading (Swiss) S.A., both trading companies, from the United Steel Group (USG). The acquisition price is approximately Euro 77 million.  The deal is subject to regulatory approval.

Acquiring companies own trading businesses of Steelco Mediterranean Trading Ltd., Tuscany Intertrade (UK), and Moorfield Commodities Company, the international wholesale traders that were exclusive export traders of NLMK’s products for several years. 

This transaction is in line with the Company’s strategy to establish an international trading department within the Group and is designed to better control the Company’s export sales and further enhance its presence in core export markets.

Press-release


2007

December
Acquisition of  Maxi-Group
Novolipetsk Steel agreed to acquire a 50%+1 share stake in OJSC “Maxi-Group” (Maxi-Group) from its founder, Nikolai Maksimov. The acquisition price is approximately USD 600 million. The deal is subject to regulatory approval.

After the acquisition of Maxi-Group, NLMK intends to grow its business by rapidly increasing finished steel products output, maintaining low production costs and developing raw material (scrap) base. Maxi-Group has plans to develop a number of mini-mills in Russia, based in low cost local production and sales to growing regional markets in Russia.

Maxi-Group, a company based in the Urals region of Russia, comprises several facilities for the production of ferrous metals, which form a production chain, from collecting and processing scrap to manufacturing rolled products

Press-release

Presentation


2006  

Acquisition of  VIZ-Stal
Novolipetsk Steel completed the acquisition of 100% of VIZ-Stal, the second-largest Russian electrical steel manufacturer, for USD 550 million.

This acquisition is consistent with the Group’s downstream vertical integration strategy, aiming for increasing production volumes of high-value-added products. VIZ-Stal has been consolidated since mid-August 2006.

July  
Acquisition of additional stake in Independent Transport Company (NTK) 
In July 2006, the Company completed the acquisition of a 30% interest in the share capital of LLC Independent Transport Company (LLC NTK).  After the completion of this transaction NLMK’s interest in its share capital hit 100%. Earlier in 2004, NLMK increased its share of the acquired company to 70%. LLC NTK is a key logistics asset of the Group which ensures timely delivery of raw materials for metal production and delivery of finished goods to consumers both in Russia and abroad.

The increase of ownership interest in the share capital of LLC NTK to 100% was carried out in accordance with an earlier announced plan of the Group’s in-house restructuring.

Press-release

April    
Acquisition of Altai-koks and Prokopievskugol  shares
In April 2006, NLMK concurrently acquired 82.23% of the of OJSC Altai-koks and 100% of the outstanding common shares of holding company Kuzbass Asset Holdings Limited, Gibraltar, which owns 100% of Russian coal producer Prokopievskugol.

Altai-koks is the leading coke-chemical plant in Russia, producing high-quality coke and chemical products. After the consolidation of minority stakes, NLMK controls 93.64% of Altai-koks shares

Prokopievskugol is a group of coal companies with coking coal production and processing plants in the Kemerovo region of Russia. It owns seven mines and three processing plants.

Press-release  

January    
Acquisition of a 100% stake in DanSteel A/S
NLMK acquired a 100% interest in DanSteel A/S, the Danish steel-rolling company, for USD 104 million. The results of operations of the acquired entity were included in the Group’s consolidated statement of income starting from December 1, 2005. Independent evaluation of the asset was performed by KPMG.

This transaction was in line with the strategy of acquiring rolling facilities in core markets and developing a high-value added products portfolio.

Press-release


2005

May    
License acquired for the exploration and development of Zhernovsky-1 coal deposit.
In a state auction NLMK acquired a license for the exploration and development of the Zhernovsky-1 high-quality coking coal deposit in the Kemerovo region, Siberia. According to the plans, the deposit is to be operational by 2009 and will provide 3 million tonnes of coking coal concentrate. The second phase of the project will bring its capacity to 6 million tonnes.

Press-release

 
2004

March    
Acquisitions of OJSC Stoilensky GOK
In 2004 NLMK made transactions aimed at acquiring an interest in OJSC Stoilensky GOK. By the end of the year the acquisitions resulted in NLMK’s ownership of 96.98% of the voting shares of OJSC Stoilensky GOK.

This transaction enabled NLMK to gain control over one of the largest iron-ore producers in Russia in order to secure long-term supplies of iron-ore products.

June    
Acquisition of Transport Company OJSC Tuapse Trade Seaport (“OJSC TMTP”) and its subsidiaries
In June 2004 NLMK acquired 69.4% of the common stock of OJSC TMTP for a consideration of USD 189,172,000 paid in cash to unrelated parties. The Group also obtained control over its subsidiaries OJSC Tuapse Sudoremntny Zavod, OJSC Tuapsegrazhdanstroi, and others.

This transaction was consummated to facilitate stable way of exports for NLMK and lower cost of port operations. 

2008 

January

Novolipetsk Steel completed the disposal of its stake in Tuapse Seaport

NLMK completed the disposal of its 69.41% share in OJSC Tuapse Seaport (TMTP) to Universal Cargo Logistics Holding B.V. (UCLH).

The transaction values NLMK’s stake at RUR 7,105,155,057 (about USD254 million), or RUR 1.17 per TMTP ordinary share.

Cash generated from the disposal of NLMK’s TMTP stake will be used to repay short-term debt and help fund the company’s current investment projects.

Press-release


2007

Disposal of Lipestkcombank.

Novolipetsk Steel completed the disposal of its 50.08% stake in OJSC Lipetskcombank. The deal is valued at approximately USD 44 million. The NLMK’s stake in OJSC Lipetskcombank was sold to OJSC Bank Zenit.

This divestment is in line with NLMK’s internal restructuring plan. In 2006, OJSC Lipetskcombank was classified by a decision of NLMK’s Board of Directors as a non-core asset.

Kuzbass Asset Holdings Limited, a subsidiary of OJSC Novolipetsk Steel (LSE: NLMK), agreed to sell the Prokopievskugol Group of Companies to a Municipal State Company representing the City Administration of Prokopievsk. According to the agreement, the transaction price is USD1.  The parties completed the transaction in April 2007. The Prokopievskugol Group of Companies was acquired by NLMK in April 2006 as an integral, conditional part of its acquisition of the Altai-koks coking facility.

In September 2006, NLMK completed the disposal of 92.04% of the outstanding common shares of OJSC Combinat KMAruda to a third party, for a consideration of approximately USD 302.5 million.

This disposal was in line with NLMK’s strategy of the optimization of the Group’s assets and it provided for the concentration of NLMK’s iron-ore activities on Stoilensky GOK, its largest and the most efficient iron-ore asset.

Press-release

January    
Divestment of a stake in Lebedinsky GOK
In January 2006, NLMK sold its 11.96% stake of OJSC Lebedinsky GOK shares of for USD 400 million.

This transaction was consummated in line with the Group’s strategy for investment management. 

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