Severstal Says ‘No’ to Europe as Thyssenkrupp’s Options Narrow

By: Reuters

Russian steelmaker Severstal has no plans to get involved in industry consolidation in Europe, its finance chief said, effectively narrowing a list of potential partners for Germany’s Thyssenkrupp.

Thyssenkrupp said last month it could put its steel unit, Europe’s second-largest, on the block, prompting investment banks and law firms to jostle for a role in the expected shakeout, people familiar with the matter said. 

India’s Tata Steel is also looking to sell its European division, the people said, adding its struggling Port Talbot plant in Britain needed 500 million pounds ($632 million) in state aid.

“We have not considered the cases,” Severstal’s CFO Alexey Kulichenko told Reuters when asked whether the group had received proposals from the three firms. “Europe today does not look like an attractive option.”

Severstal has no plans for any big mergers or acquisitions but remains mindful of market opportunities, he added.

Source: NYTIMES (2020)

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