Celsa’s divestment of its non-Spanish steelmaking units is gaining momentum. United Arab Emirates’ largest steelmaker, Emsteel, is in talks to acquire the Spanish firm’s plants in Poland, the UK and Norway, according to reports.
Asked by Kallanish about the reported interest from Emsteel, a Celsa spokesperson said: “We can neither confirm nor deny anything until the operation is finalised.” However, the firm confirms the selling process for the units is underway and there are several interested investors.
Meanwhile, the UAE state-owned company says it is aware of recent media reports but its policy is not to comment on “rumours or speculation”. It explains: “We regularly assess organic and inorganic opportunities to grow the business. Any relevant announcements will be made in line with regulatory requirements.”
Celsa expects to strengthen its financial position by selling its Huta Ostrowiec works in Poland, as well as its Norwegian and UK steel plants for around €1 billion ($1.11 billion). Market analysts, however, estimate the value of the assets has fallen significantly amid the current uncertainty in the steel sector. These operations generate 50% of Celsa’s group Ebitda.
Two southern European long products makers were reported to have had bids rejected recently for Celsa’s Polish plant (see Kallanish passim).
Celsa meanwhile remains focused on finding a new local partner in Spain. This was a requirement set by the Spanish government when the main creditors took control from the Rubiralta family last year. Since Celsa is considered a strategic business, the new owners must find a local investor to take a 20% stake in the group, according to the commitment.
The Spanish press has reported that Sidenor, Megasa and Christian Lay have shown interest and meet the requirements. However, Celsa has indicated that its priority remains the possible sale of the foreign units before closing a partnership deal with one of these companies.
Todor Kirkov Bulgaria , Burak Odabasi Turkey
