The two largest producers of ferromanganese in the Russian Federation - the Satka iron-smelting plant and the Kosogorsk metallurgical plant - are planning to combine their assets. If the deal goes through, the combined company will be able to control 85 percent of the Russian ferromanganese market.
According to Kommersant, the Satka Iron Smelting Plant (SCHPZ) intends to acquire up to 100 percent of the voting shares of the Kosogorsk Metallurgical Plant (KMZ). Plants produce pig iron and ferromanganese. The Federal Antimonopoly Service (FAS) of the Russian Federation reported that a decision on the application has not yet been made, but this should happen no later than July 25. FAS has already extended the period for consideration of the petition in connection with the need for additional consideration and additional information.
According to Kommersant, the need for additional information could arise due to the fact that the plants are the largest suppliers of ferromanganese to the Russian market. KMZ in its annual report estimated the total volume of the Russian market at 154.8 thousand tons and called SCHPZ its main competitor. Thus, the share of SCHPZ was 46 percent, KMZ - 39 percent, Chelyabinsk Electrometallurgical Plant JSC - 9 percent, Igor Kolomoisky's Privat Group and other imports - 3 percent each.
