UAE’s leading steel producer, EMSTEEL (formerly Emirates Steel Arkan), has expressed interest in acquiring the mills of Spanish steelmaker Celsa located in Poland, the UK, and Norway, which have a combined value of approximately USD 1.11 bln, according to a report from the Spanish newspaper El Economista.
EMSTEEL has reportedly initiated discussions with Celsa’s top management regarding its interest in these assets. The potential sale, part of Celsa’s ongoing restructuring process, is being managed by Citi investment bank, though a deal is not expected to be finalized soon.
Celsa launched the sale of its overseas units in February as part of efforts to stabilize its financial situation. While it is uncertain whether the mills in Poland, the UK, and Norway will be sold in a single transaction, a sale would alleviate some of Celsa’s financial pressures. Other companies, including Sidenor, Megasa, and Grupo Gallardo, are also reportedly interested in acquiring Celsa’s steel operations.
Celsa was taken over by creditors in November last year after a Spanish court approved the move. The new ownership group includes Deutsche Bank, SVP, Cross Ocean, Anchorage, Golden Tree, Attestor, Goldman Sachs, Sculptor, and Capital Group. Earlier this year, local media reported that Celsa is considering selling the mills in Poland, Norway, and the UK as part of its strategy to maintain its financial structure and repay debts.
The creditors took control of the company after Celsa failed to finalize a debt restructuring deal exceeding USD 3 bln, which was later renegotiated with a five-year maturity extension.
Celsa Group operates seven steel mills, 12 rolling mills, and 48 scrap recycling facilities across Spain, France, the UK, Denmark, Finland, Norway, Poland, Sweden, and Ireland.
Headquartered in Abu Dhabi, EMSTEEL has a production capacity of 3.5 mln tons of steel and 4.6 mln tons of cement annually. The group exports to over 70 markets, accounting for 30pct of its sales. The company offers a diverse range of steel products, including wire rod, rebar, heavy sections, and sheet piles.
