Russian billet and rebar producer Abinsk Electic Steel Works (Abinsk) has entered into a definitive agreement with compatriot Severstal to buy its long-products mini-mill in Balakovo in the Volga federal district.
The transaction, worth $215 million, is expected to be completed by the end of June, following the receipt of approvals and other standard conditions."Following the sale of mini-mill Balakovo, we plan to focus on developing steel production at our main asset, the Cherepovets Steel Mill," said Alexander Shevelev, Severstal's chief executive officer.Said Abinsk general director Vitaly Babenko: "The acquisition of the company is fully consistent with the strategy of our company and will allow us to strengthen our position in the market."Abinsk will direct the sales from the Balakovo mill mainly toward the domestic market in Russia, a company representative told Fastmarkets.Steel...