Spain-headquartered long steel producer Celsa has sold its UK and Nordic subsidiaries to Czech investment group Sev.en Global Investments, the two companies announced Nov. 21 in separate statements.
Celsa Steel UK is the largest EAF-based steel producer in the UK with production capacity of 1.2 million mt/year of crude steel at its plant in Wales. Celsa Nordic has operations in Norway, Finland, Sweden and Denmark and produces via its EAF-based plant in Mo i Rana, Norway, with output of 683,000 mt of rebar and wire rod in 2023.
Celsa said it would “devote all the funds received after the divestment to the reduction of Grupo Celsa’s indebtedness in accordance with the legally assumed commitments.”
It did not give a price for the deal, although Spanish newspapers citing industry sources said the price tag was Eur600 million ($632 million).
“Through this important divestment, which is added to the recent increase in share capital and the launch of an ambitious efficiency plan, Grupo Celsa continues with the implementation of its plan to reorganize its industrial and financial situation, focusing on its operations in Spain and on the reduction of financial leverage,” Celsa said.
Earlier this year, Celsa said it was considering selling its international operations in Norway, Poland and the UK to pay off its debts, while in October parent company Celsa Steel approved a capital increase of Eur166 million to fund a comprehensive efficiency and growth initiative.
This is the first entry into the steel industry by Sev.en, which has a track record of targeting restructuring and growth acquisition opportunities, particularly in power generation and mining of various natural resources.
“The integration of Celsa’s steel plants will enhance Sev.en Global Investments’ diverse portfolio by adding a combined production capacity of 2 million mt of steel products annually. These products, primarily used in construction applications such as bars, sections, mesh, and wires, underscore the group’s unwavering commitment to sustainable industrial practices,” Sev.en said in its statement.
Sev.en Global Investments is part of the Sev.en Group, whose beneficiary is Czech entrepreneur and investor Pavel Tyka.
Platts, part of S&P Commodity Insights, assessed Northwest Europe Rebar Ex-Works Wkly at Eur600/mt on Nov. 20, stable week on week. Since the beginning of the year prices lost Eur20/mt, but they are still well below the highest historical prices reached on March 30, 2022 when they recorded Eur1340/mt base ex-works.
