Evraz Group, a Luxembourg-based steel producer with key assets in Russia, plans to buy a 51% interest in Chinese steel producer Delong Holdings for U.S. $1.494 billion, Russian business daily Vedomosti reported Tuesday, citing Evraz Group, Prime-Tass reports.
The shares will be purchased from Best Decade and its shareholders, Evraz Group said. No information on Best Decade was available.
Delong Holdings owns a steel mill with an annual capacity of 2.4 million tonnes, a pipe plant and a coal gas trader, according to Vedomosti. Delong Holdings' revenue totaled $704.2 million in January-September 2007, while its net profit amounted to $68.5 million, Vedomosti reported.
Evraz Group is one of the largest vertically-integrated metal and mining companies operating in Russia.