AMCU allowed Metinvest Group to take part in tenders for the acquisition of MMC assets

The Antimonopoly Committee of Ukraine (AMCU) has granted permission to Metinvest Group to concentrate the assets of the Dnieper Metallurgical Plant (DMK) by acquiring them. Now DMK is in bankruptcy proceedings, a sanatorium has been assigned to the enterprise. DMK’s assets are traded through the ProZorro system. The sale of MMC assets at auction is a prerequisite aimed at preventing production stoppages and liquidation of the enterprise.

AMCU obliged Metinvest Group, in case of winning the auction, to sell at least 12,000 tons of pig iron to third parties annually for three years. The Group has not yet made a decision to participate in the auction, as it considers the obligations established by the AMCU to be unreasonable, the terms for consideration of the application are protracted, and the attitude towards the Group is biased. To participate in the auction, Metinvest sent an appeal to the AMCU back in 2020, but the consideration of the application took a long time, despite the limited time frame for the rehabilitation of the DMK.

Setting liabilities for Metinvest Group reduces the investment attractiveness of worn-out assets of DMK and creates unequal conditions for other potential bidders. Other market participants have the opportunity to satisfy the demand for merchant pig iron in the volume that contains the obligations of the Metinvest Group, therefore the company is assured of a losing position in the sale of merchant pig iron.

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