On Friday, May 28, an agreement was signed on the acquisition of the metallurgical complex Huta Częstochowa by Liberty. Corween Investments, part of Liberty Steel, leased the Huta Częstochowa steel plant at the end of December 2020.
The lease was supposed to end at the end of July 2021. To become the full owner, Liberty Częstochowa won the third tender for its purchase and paid PLN 190 million for the plant.
Recall that the third tender was held in January this year. The price for Huta Częstochowa started at PLN 190 million. This is 60 million less than in the first tender and 30 million less than in the second.
Today, Liberty Steel made the final payment of PLN 171 million (approximately $ 46.4 million), having previously paid PLN 19 million for the lease of the plant and closed the balance of the sale price of PLN 190 million by signing the final contract in Warsaw.
For a while, it seemed that the deal was in question, since after the collapse of the financial company GFG Alliance, which includes Liberty Steel, it began to face financial difficulties and has put up part of its assets for sale.
Huta Częstochowa, which previously belonged to the Ukrainian corporation Industrial Union of Donbass (ISD), was declared bankrupt on September 4, 2019. A tender was scheduled for April 2020, but it was declared invalid due to the lack of bids. A new tender was scheduled for June 2020, but the tender did not take place again.
According to Liberty Steel, Huta Częstochowa can produce up to 0.7 million tons of green steel in an electric arc furnace and 1.2 million tons of sheet steel per year.