Sat, Jul 04 2009

Kremikovtzi to stay in the Mittal family

Mon, Mar 17 2008 18:47 CET byElitsa Grancharova 166 Views
Kremikovtzi to stay in the Mittal family

Lakshmi Mittal, the older brother of current Kremikovtzi owner Pramod Mittal, is interested in buying Bulgaria's biggest steel mill Kremikovtzi, Economy and Energy Minister Petar Dimitrov said on March 16, as quoted by Reuters.

Dimitrov said Lakshmi Mittal, chief executive of ArcelorMittal, the world's largest steel maker, had sent letter to Prime Minister Sergei Stanishev to announce his interest.

"Lakshmi Mittal says in his letter the mill represents a strategic interest to him and that he is ready to carry out all necessary environmental upgrades," BTA news agency quoted Dimitrov as saying during his visit to Varna, Reuters reported.

Ukrainian billionaire Kostyantin Zhevago, who controls 73 per cent of London-listed Ukrainian iron ore producer Ferrexpo, expressed similar interests in Kremikovtzi in his letter to the Bulgarian government in January.

Reuters also quoted Kremikovtzi as saying that owner of metallurgic firm Metinvest, Ukrainian Rinat Akhmetov, also has interests in purchasing the Bulgarian steel factory.

After Pramod Mittal announced the company is looking for strategic investor for Kremikovtzi, he appointed Merrill Lynch to advise him on how to go on after failing to invest in the steel producer about 140 million euro needed for environmental upgrades and working capital.

The Bulgarian government holds a 25 per cent stake in Kremikovtzi. Dimitrov said the state would insist on the factory bidders to guarantee that they will keep the plant operating by making the needed investments.

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