USA may frustrate plans of Russian steel company

12 Dec, 2006 07:11 / Updated 17 years ago

The USA may halt the largest planned takeover of a US company by a Russian one, Evraz. A US governmental committee on Foreign Investment will examine whether Evraz is influenced by the Russian government.

According to the deal, announced in November, Russia's company Evraz, partially run by Russian billionaire Roman Abramovich, intended to buy American steel producer Oregon Steel. Evraz group is the largest steel producer in Russia and one of the world's most profitable steelmakers. The group said the takeover would help both companies achieve their goals, and allow it a foothold in the American market. However, the United States is reportedly worried that the proposed $US 2.3 BLN deal could threaten America's strategic steel supply. If the US committee on Foreign Investment finds that Evraz is pusuing political interests, it has the power to stop the takeover.