2 July 2010
Following months of rumors, yesterday Metinvest, Ukraine’s largest metallurgical holding which is owned by Ukraine’s richest man Rinat Akhmetov, announced it would merge assets with MMK Illicha (UX: MMKI UK). Metinvest’s share in the partnership will equal 75%, with 25% remaining under control of Illicha owner Volodymyr Boyko. This partnership will involve all assets of MMK Illicha, and the following enterprises of Metinvest Group: Inguletsky Iron Ore, Krasnodoncoal, Avdiyivka Coke (UX: AVDK UK), and Khartsyzk Pipe (UX: HRTR UK). Pursuant to the merger, Metinvest will participate in the upcoming additional share issue of MMK Illicha (see our news of June 21 for details). In a meeting with Illicha workers, Akhmetov said Metinvest plans to invest USD 2 bln into MMK Illicha in order to modernize the plant.