Obligations to sell commercial pig iron to third parties create obstacles to the consolidation of the assets of the Dnieper Metallurgical Plant (DMK) into the Dutch mining and metallurgical holding Metinvest B.V. (Metinvest), thereby limiting the group's long-term investment planning opportunities. This is stated in the message of the press service of Metinvest on Friday.
“The main range of products manufactured by DMK does not coincide with the range of products of the Metinvest Group. Other market participants have the opportunity to meet the demand for commercial pig iron in the amount that is included in the obligations of the Metinvest group. Accordingly, the company finds itself in a deliberately losing position in the sale of commercial pig iron, ”the message says.
The Antimonopoly Committee of Ukraine (AMCU) has submitted for discussion the restrictions on participation in tenders for the acquisition of the Dnieper Metallurgical Plant (DMK). In case of winning the auction, the AMCU intends to oblige Metinvest to sell at least 12 thousand tons of pig iron to third parties annually for three years.
Metinvest Group considers the established obligations of the AMCU to be unreasonable, the terms of consideration of the application are protracted, and the attitude towards the group is biased. According to the company, the establishment of obligations for the Metinvest group reduces the investment attractiveness of the depreciated assets of DMK and creates an unequal playing field compared to other potential bidders.