Metinvest Group has not yet made a final decision on participation in the tender for the purchase of the assets of PJSC Dnipro Metallurgical Plant due to the uncertainty regarding the possibility, terms and conditions of obtaining permission from the Antimonopoly Committee of Ukraine, as well as due to the deplorable technical condition of the plant’s assets.
According to a source close to the ISD, reports znaj.uaTaking into account the current surplus in commercial pig iron and the availability of opportunities to meet the domestic demand for pig iron from other market participants, Metinvest considers the AMCU’s obligations under review as excessive. In addition, additional requests and procedures related to the consideration of obligations delay the receipt of permission on the application filed back in 2020.
Thus, Metinvest considers excessive restrictions, first of all, to establish obligations to sell products over a long period of time. This reduces the investment attractiveness of the already worn-out assets of DMK, and puts the company in an unequal position compared to other trading participants.
As a reminder, on February 11, 2021, the AMCU announced the beginning of the consideration of the case on the indirect acquisition of the CEC DMK by the Metinvest group. Earlier, on January 28 of this year, the AMCU granted permission for the acquisition of the CEC “DMK” to a large company for trading metals and metal ores, LLC “Optimal Trade” (Kiev), to which the shareholders of PJSC “Donetskstal” -metallurgical plant “transferred the rights of claim in September 2020 debt of DMK for UAH 8.175 billion.
In early May, the Antimonopoly Committee of Ukraine requested the opinion of market participants, in particular, metallurgical enterprises, regarding the voluntary restrictions of the country’s largest mining and metallurgical holding – the Metinvest group – in the event that it gains indirect control over PJSC Dnipro Metallurgical Plant.
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