14 Aug '08
The Novolipetsk Steel Company (NLMK) has bought American pipe firm John Maneely Company (JMC) for $3.6bn from US direct investment fund Carlyle Group and the Zekelman family.
The firm financed the move mainly with borrowed funds, including a $1.6bn pre-export loan and $2bn of BRIDGE-funding provided by loan firms Merrill Lynch, Deutsche Bank and Societe Generale.
The company said it planned to integrate JMC with US hot roll manufacturer Duferco Farrell, part of a JV set up by NLMK and US investment outfit Duferco Steel Invest & Finance.
Experts believe the purchased asset was underpriced. Carlyle Group’s director for global communications Christopher Willman said the Fund was satisfied with the price and denied it was low.