16 June 2010
Volodymyr Boyko, the CEO of Mariupol Illich Steel (UX: MMKI UK), announced yesterday that his company is negotiating a merger with Metinvest Holding, Ukraine’s largest metallurgical group. According to Boyko, Mariupol Illich Steel would benefit from the merger thanks to the raw material base of Metinvest (iron ore, pellets and coke). Metinvest Holding’s representatives confirmed that negotiations with Mariupol Illich Steel are in progress. Andriy Gerus: We believe the merger would benefit both sides. Should it materialize, the combined company would make it to the top 20 worldwide by steel production and enjoy all benefits of vertical integration given that Metinvest has excess iron ore (Pivnichnyi, Centralnyi, Ingulets and Pivdennyi Iron Ore plants), coking coal (Krasnodon Coal in Ukraine and United Coal Company in the U.S.), and coke (Avdiyivka Coke) production, which can be used to make steel at Mariupol Illich. Currently, Metinvest Holding is #7 globally by iron ore production.