Arcelormittal Cleared to Buy Severstal Coal Mines

MOSCOW. Feb 29 (Interfax) – The Russian Federal Antimonopoly Service (FAS) has cleared Mittal Steel Holdings AG, a subsidiary of ArcelorMittal, the world’s biggest steel producer, to acquire 100% of the voting shares in a number of Russia-based coal mining assets, the FAS said in a statement.

The FAS said the deal would not threaten competition.

ArcelorMittal said on January 31 that it was buying a number of coal mining assets in Russia, some of them from Severstal (RTS: CHMF), for a total of $720 million.

ArcelorMittal said it would buy 97.59% of OJSC Shakhta Berezovskaya and 99.35% of OJSC Shakhta Pervomaiskaya, both of which mine coking coal in the Komi Republic.

The company also said it would buy Severstal’s Severnaya coal enrichment plant, which is attached to the Berezovskaya mine; controlling stakes in three ancillary transport, maintenance, repair and energy supply enterprises; and the rights to the Zhernovsyaya-3 coal field.

Severstal itself said it was selling these assets for $650 million.

In addition, ArcelorMittal said it was buying 100% of the OJSC Skahkta Anzherskaya mine from an unspecified seller. One of the parties to the transaction told Interfax that this mine was owned by a company affiliated to but not owned by Severstal.

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