Posted on 26 Jan 2021
Liberty Steel, part of London-based metals and energy group GFG Alliance, said Jan. 25 it has submitted "a firmed-up bid" for thyssenkrupp Steel Europe, Germany's largest steelmaker, whose acquisition it has been targeting for several months.
The new bid is based on the results of a comprehensive due diligence process including multiple site visits, which Liberty has been carrying out at thyssenkrupp Steel Europe, a Liberty spokesman said.
In October 2020, Liberty made a non-binding offer to acquire the steelmaking assets of thyssenkrupp Steel Europe, which is undergoing financial restructuring following recent losses.
"This is an important step for Liberty demonstrating our binding commitment to the combination of the two businesses," the Liberty spokesman said, without immediately giving further details on the value of the bid or the potential timing of any takeover.
"Due diligence and our discussions with thyssenkrupp have so far confirmed that a potential combination of thyssenkrupp Steel Europe and Liberty Steel is the right answer from an economic, social, and environmental perspective. We look forward to continuing to engage with thyssenkrupp, its employee representatives and its shareholders to conclude this process," the spokesman said.
Liberty Steel has grown rapidly since 2015 via acquisition of some former ArcelorMittal works in Europe, and other steel mills in the UK, France, US, Australia and India, turning around some mills which had entered difficulties. In the week ended Jan. 23, Liberty won a tender to buy troubled Polish plate mill Huta Czestochowa, with an 840,000 mt/year crude steel capacity, for around $51 million.
Liberty in recent weeks stated it has considered that further consolidation would help build scale and reduce costs in Europe's decarbonization process, in which Liberty and thyssenkrupp Steel Europe already have major commitments.
Source:Platts
