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14 March 2006
Severstal targets Carrington Wire for acquisition
Russia’s Severstal has expressed an interest in acquiring Carrington Wire, the UK’s largest wire maker and part of the Acertec Holdings Ltd. group.
David Crimp, chief executive at Carrington, tells Steel Business Briefing that the company is talking to Severstal – and an unspecified number of other potential buyers. He confirms that the company is in good shape following recent reorganisation and investment and attributes the proposed sale to Acertec’s investment strategy.
An executive from Severstal-Metiz, the Russian group’s steel fabricating division, informs SBB that it wants to get clearance under European anti-trust rules to buy a controlling interest in Carrington. It has recently acquired Ukrainian wire manufacturer Dneprometiz and, the executive adds, intends to target this company at European markets.
SBB notes that Severstal paid $45m (€38m) for Dneprometiz and Russian market analysts estimate that any deal for Carrington could be in the range $40-100m depending on the level of shareholding acquired.
Carrington Wire with mills in Elland, Yorkshire and Cardiff, Wales has a wire manufacturing capacity of over 200,000 t/y and produces for a range of applications including baling, bedding and seating, cold heading and prestressed concrete.
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