Steelmaker Lakshmi Mittal's LNM Group is on the takeover trail once again and poised to take control of two steel mills in Macedonia that can produce about 2.2 million tonnes of steel annually.
The LNM Group has signed a share purchase agreement with Balkan Steel International to acquire the two plants and it is offering a bridge loan to allow the company to clear outstanding wages and other social charges. Under the agreement the LNM Group will acquire a 1.2 million tonne hot-strip mill and a 1 million tonne cold rolling mill, both located near Skopje, Macedonia.
The deal, which is scheduled to close in a few months, is subject to regulatory clearances and several other conditions. This latest move will consolidate the LNM Group's strong position in eastern and central EU where it produces around 14 million tonne of steel annually.