Metinvest acquires 50% stake in Zaporizhstal

Metinvest, Ukraine’s largest Ukrainian metals and mining holding, acquired 50% of Industrial Group, which owns more than 50% of Zaporizhstal (UX: ZPST UK), according to media reports. Metinvest reportedly also received an option to purchase the remaining 50% of Industrial Group.  After interest by Severstal, Posco, ArcelorMittal & Metinvest, Zaporizhstal was believed to have been acquired by unknown Russian investors in 2010. In 1H11, Zaporizhstal increased rolled steel production by 16.7% y-o-y to 1.590 mln mt, crude steel by 16.4% y-o-y to 1.914 mln mt, and pig iron by 7.4% y-o-y to 1.477 mln mt. Net revenues in 2010 increased by 47.2% y-o-y to UAH 13.2 bln, while net income accounted for UAH 241 mln, versus a net loss of UAH 290 mln in 2009.