The Ukrainian Metal

Ukraine: Metinvest’s deal largest in M&A in past years

Metinvest deal to buy 24.99% of Pokrovskoye Mine Group is one of the largest on the Ukrainian market in the past years.

Metinvest paid $190 million for the stake.

According to Eavex Capital, the whole company is estimated at $0.9-1.1 billion, thus the stake has been purchased at a market price.

The mine group belonged to the oligarch Victor Nusenkis known for his pro-Russia attitude. Thus the enterprise left the control of pro-Kremlin oligarch. The deal did not affect Donetskstal or other Nusenkis’ assets.

Last year Metinvest lost assets on the uncontrolled territory, including the only coal producer in Ukraine – Krasnodonugol. So, the acquisition of a new coal enterprise on the controlled territory is a logical move for the company.

The mine group will cover 20% of Metinvest coking coal needs. (Ukrainian metal)

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