Arcelor has announced that it has entered into an exclusivity agreement with Schmolz Bickenbach for the sale of 100% of its stainless long products subsidiary Ugitech. The intended sale is subject to the completion of a due diligence, approval by the boards of directors of both companies and appropriate regulatory approvals. The sales project that would bring together Ugitech with Edelstahl Witten-Krefeld GmbH and Edelstahlwerke Südwestfalen GmbH, recently acquired by Schmolz Bickenbach through its majority controlled company Swiss Steel AG, would allow the creation of the European and world leader in stainless long products, coupled with a powerful distribution network. The potential merger would contribute to the necessary concentration of this industry sector.
