SSAB (MW) has published a press release where the company confirms that it is in discussions with Tata Steel Group concerning a potential acquisition of Tata Steel Europe’s IJmuiden steel mill, located in the Netherlands, and other related downstream assets. No further information was provided regarding timeline, potential deal structure or financing.
According to Tata Steel, the IJmuiden plant has a production capacity of c.7.5m tonnes per year. SSAB has total production capacity of 8.8m tonnes per year, so clearly this would be a significant acquisition that would add substantial scale to the combined entity. Credit neutral at this stage until further information becomes available.
