Russian steelmaker NLMK and Swiss-based Duferco have agreed a joint venture, after receiving approval from the European Commission last week. Analysts estimate the deal to be worth around $US1.6 billion.
The joint venture will allow NLMK to supply more unrolled steel to Duferco's mills in line with its plans to expand production by 40% over the next 5 years. Duferco will then process the steel further. Dmitry Kolomytsyn from Aton Capital says the announcement marks a further step towards consolidation in the global steel industry.