Russia’s Mechel buys over 95% of shares in Britain’s Oriel
Mechel, a leading Russian mining and metals company, said on Thursday it had acquired 95.69% of shares in the UK-based Oriel Resources Plc, which owns assets in Russia and Kazakhstan.
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, in late March. The Russian company said it would now start compulsory acquisition of the remaining stock. The company received approval from the Russian and Kazakh regulators on Wednesday for the acquisition of Oriel’s stock.
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 stands at around $18 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
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.