Liberty Steel, part of the London metals and energy group GFG Alliance, announced that it has applied for “thyssenkrupp Steel Europe, the largest steel producer in Germany, which it aims to acquire within a few months.
The new proposal builds on the results of a due diligence, including multiple site visits, which Liberty conducted at thyssenkrupp Steel Europe, a Liberty spokesman said.
In October 2020, Liberty made a non-binding offer to acquire the steel assets of thyssenkrupp Steel Europe, which is undergoing financial restructuring following recent losses.
“This is an important step for Liberty and demonstrates our commitment to merging the two businesses,” a Liberty spokesman said, without giving immediate details on the cost of the offer or the possible timing of any takeover.
“Due diligence and our discussions with thyssenkrupp have so far confirmed that the potential combination of thyssenkrupp Steel Europe and Liberty Steel is the right answer from an economic, social and environmental point of view. We look forward to continuing our cooperation with thyssenkrupp, its employee representatives and its shareholders to complete this process, ”said a company spokesman.
Liberty Steel has grown rapidly since 2015 through the acquisition of some of ArcelorMittal’s former factories in Europe and other steel mills in the UK, France, USA, Australia and India, resulting in the replacement of some of the factories that were struggling. In the week ending January 23, Liberty won a tender to buy the troubled Polish heavy plate mill Huta Czestochowa with an annual capacity of 840,000 tons of steel for approximately $ 51 million.
Liberty has said in recent weeks that it believes further consolidation will help scale up and reduce costs in decarbonising Europe, in which Liberty and thyssenkrupp Steel Europe already have strong commitments.