Last July, Evraz Group, one of Russia's largest steel and mining companies, and Credit Suisse bought 24.9% each in Highveld Steel and Vanadium Corporation Limited from Anglo American plc. mining group, the company said in a statement.
Evraz had an option to purchase Anglo American's remaining 29.2% shareholding as well as the 24.9% holding of Credit Suisse once regulatory approvals were received from the anti-monopoly authorities in South Africa and the European Union.
Under the terms of the clearances granted to Evraz in February and April 2007 by the European Commission and anti-trust authorities in South Africa, Evraz has committed to divest certain vanadium production facilities and related assets, the statement said.
The deal will enable Evraz Group to turn into a global vanadium producer, the statement said.
"With the acquisition of Highveld Steel and Vanadium Corporation, Evraz becomes the leading player in vanadium globally," Evraz CEO Alexander Frolov said.
With its stake in the vanadium producer augmented to 54%, Evraz is required under South African law to make a mandatory general offer to all Highveld shareholders once its ownership position has exceeded 35%. The offer will be made within the next 30 calendar days, the statement said.
