Mechel to take $1.5 billion loan to buy Britain’s Oriel
The board of Mechel approved on Tuesday a deal to take out a $1.5 billion loan to buy Britain’s Oriel Resources Plc, Russia’s leading mining and metals company said in a statement.
Mechel made a $1.498 billion purchase offer to Oriel, a London-based chrome and nickel mining and processing company valued at around $1.2 billion, last Wednesday. The loan will be arranged by ABN Amro Bank N.V. and Merrill Lynch International. Oriel owns the Tikhvin smelter near St. Petersburg and has two deposits in Kazakhstan, including the Voskhod chrome and the Shevchenko nickel projects.
Mechel’s market capitalization is around $18.1 billion. Last year, the company increased its coal output by 25% to 21.2 million metric tons, and pushed rolled steel production up 9% to 5.1 million metric tons. (rian.ru)
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.