The sale of U.S. Steel Košice (USSK), the Slovak plant of the US steel giant and the biggest employer in eastern Slovakia, has begun, the website of the economic daily Hospodárske Noviny, wrote on the evening of January 26.
Based on the daily’s information it is understood that the two companies signed a memorandum of understanding in Pittsburg on January 26 thus starting the flow of Chinese capital into the Košice-based plant.
“We will not comment on this topic,” said Ján Bača, USSK spokesperson, as cited by the daily.
The next step should be due diligence which is expected to start in February.
“The memorandum does not have strict rules, but it sets concrete limits and dates for the deal,” said Juraj Borgula, vice-president of the Slovak Engineering Industry Association (ZSP), adding that these include the conditions under which a possible buyer can show interest and the seller can dispose of the assets. “The signing of the memorandum also blocks other possible buyers.”
Among others interested in the acquisition of USSK was, for example, Czech Moravia Steel behind which stand Slovak billionaires led by Tomáš Chrenek.
Allegedly He Steel has offered €1.4 billion for USSK. This is a sum for which the American owners might be willing to sell the plant, the daily wrote.
26. Jan 2017 at 22:05 | Compiled by Spectator staff