Ascometal terminates sale to Acciaierie Venete

The sale of Ascometal’s French units to Italian long steel producer Acciaierie Venete will not go ahead. The Swiss Steel-owned special steelmaker has chosen not to exercise the option-to-purchase agreement signed with Acciaierie Venete, but did not disclose why, Kallanish notes.

The sale, announced in December last year, was to include the Hagondange facility in the Moselle region, Custines in Meurthe-et-Moselle, and the Le Marais plant in the Loire region, as well as Ascometal’s CREAS research centre.

Following the termination of the negotiations with Venete, Ascometal will start judicial reorganisation proceedings – “procédures de redressement judiciaire” – for each of its facilities. A source close to the matter confirms the company will go into receivership and a public tender will be held to find a buyer in the coming weeks.

“The opening of judicial reorganisation proceedings is expected to have no net negative financial impact on the remaining business of the Swiss Steel Group,” the parent company says. It adds it will focus on the development of its core activities.

Natalia Capra France