The Kazakhstan, Moscow and Brussels offices of global legal practice Norton Rose Fulbright have advised Yildirim Group, a Turkish diverse holding group, on its planned $425 million acquisition of ferroalloy assets from OAO Mechel. The transaction was announced by Yildirim and Mechel on 1 August 2013.
Subject to certain conditions, Yildirim Group will acquire the Voskhod Mining Plant in Kazakhstan, a modern chrome ore mine, and Tikhvin Ferroalloy Plant in Russia. The Plant produces up to 120,000 tons per annum of high-carbon ferrochrome that is used to produce stainless steel. With the addition of Mechel’s ferroalloys assets, Yildirim Group will solidify its position as the world’s second largest producer of high-quality high carbon ferrochrome. The acquisition will boost Yildirim Group’s production capacity to 2.5 million tons per annum.
The deal was led by relationship partner Yerzhan Kumarov from the Kazakhstan office, with support in Kazakhstan from associates Yelena Manayenko and Avaskhan Asanaliyev. In Russia, relationship partner Anatoly Andriash and Dinara Dorizo led on the Russian aspects of the transaction. Partner Nick Dingemans led the English law aspects of the transaction with associate William Stroll. Christian Filippitsch and Cora Wadsworth of the Brussels office provided competition advice.
Yerzhan Kumarov, managing partner of Norton Rose Fulbright Kazakhstan practice commented:
“This was a complex multi-jurisdictional transaction that called on our experience throughout Kazakhstan and Russia as well as a number of other jurisdictions. Together with Turkish firm Erdem & Erdem, our multi disciplined team advised Yildirim on Kazakh and Russian due diligence, European, Russian and Kazakh competition issues and on the successful negotiation of complex English law transaction documents.”
The deal is subject to receipt by the parties of certain governmental approvals in Russia and Kazakhstan, including the approval of the Russian Federal Anti-Monopoly Service and the Kazakhstan Anti-Monopoly Agency. The Kazakhstan and Russian offices of Norton Rose Fulbright are currently advising on applying for these approvals.
