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What Lies Behind The Sidenor-Nucor Deal

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The agreement of the main shareholders of Sidenor with the American company Nucor seems to be far reaching. Both parties aim at dynamic expansion in SE Europe, a region which is set to grow rapidly in the following years.

 

Nucor will hold 34% in a subsidiary holding which will be established by Sidenor to house its steelwork activities.

Analysts believe that this move paves the way for a far reaching capital restructuring in the company, but it is too early to make concrete predictions. Viohalco, which holds 57% of Sidenor is in undergoing a reorientation process.

Sidenor officially declares that the deal is a strategic partnership, however one should not exclude the possibility of the new holding passing to Nucor/

Sources said that the main reason why Corinth Pipeworks is excluded from the deal is that this is one of the few companies in the group to post such a strong growth,

Sidenor was founded in 1937 and was listed on ASE ten years later. Today it is one of the markets leaders, comprising more than 80 subsidiaries across 60 countries.

The new subsidiary will include Viohalcos steelwork activities, with the exception of Corinth Pipeworks. The company is expected to produce 3.6 million tonnes in 2009.

Nucor has an annual production of 23 million tonnes. It was founded in 1900 and supplied steel to American car manufacturers to become the biggest player in the American market.

Nucor has a turnover of 16.5 bllion euro and profits of 1.7 billion. The company follows an expansion policy by acquiring smaller companies. Its last acquisition was an Italian company, while SE Europe is considered a priority market, expected to post annual demand growth of 10%.

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