LNM Group, the world’s second largest and most global steel producer, today announces that LNM Holdings N.V. has signed a share purchase agreement with Balkan Steel International to acquire a majority of the shares of two steel companies in Macedonia. Closing is subject to various conditions, including, but not limited to, approval by the relevant competition authorities.
The companies to be acquired by LNM operate a 1.2 million tonne hot-strip mill and a 1 million tonne cold rolling mill, both located near Skopje, Macedonia. These companies currently export their products to the European Union, the U.S. and all of the republics of the former Yugoslavia.
Although the closing has not yet occurred, LNM has already begun to become involved in the recovery of the companies, mainly by agreeing to make a bridge loan to the companies to allow them to settle some past-due wages and social charges currently owed by the companies. Three months outstanding wages will be settled today at the hot-strip mill and 2 months at the cold rolling mill.
In addition, as soon as the closing takes place, LNM intends to make its first priority to bring the mills up to design capacity within a short period of time by sourcing slabs from LNM’s nearby facilities.
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