Marcegaglia buys SSDs from the Russian Serverstal and lands in Latvia

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Marcegaglia Carbon Steel has signed the purchase of 100% of Sia Severstal Distribution (Ssd), a Latvian company owned by the Russian steel group Severstal in Riga. The company has taken the name of Sia Marcegaglia Baltics, service center for carbon steel. “A few months after the purchase of the long stainless steel products division from Outokumpu, Marcegaglia – the company underlined – scores another important operation which allows it to strengthen its commercial structure in a territory, that of Northern Europe and of the Baltic Countries, in which up to now it was not present, relaunching the activity of a European company, above all in Latvia and, in cascade, also in Poland and Ukraine where SSD owned two small trade companies».

Closing after authorizations

The closing of the sale agreement was conditional on obtaining all the authorizations and clearances from both the Latvian government and the competent national and European authorities. The Latvian Council of Ministers, after analyzing the dossier, at the end of February, favorably evaluated the purchase by Marcegaglia, a company that could ensure SSD prospects of an effective relaunch. The go-ahead to proceed also from the EU antitrust authorities arrived at the beginning of April and made it possible to close the purchase operation, with the Marcegaglia group followed by PwC. The consideration has not been paid to the seller, but will remain “frozen” in a escrow account, until the sanctions regime in place against Russia continues. Severstal said EU sanctions on its main shareholder, Alexey Mordashov – also targeted by the US – had made it impossible for its distribution division to operate in Europe.

Success of the Italian system

“The arrival of the Marcegaglia group represents a qualitative leap for Italian industry in the Baltic region: it is a significant success of the Italian system and an example of successful collaboration between Rome and Riga also in the common European context”, he underlined the Italian ambassador in Riga Alessandro Monti, in a note commenting on the acquisition. The embassy followed the entire course of the operation by assisting the Italian group in dialogue with the Latvian authorities, in close coordination with the General Directorate for the Promotion of the Country System of the Farnesina and with the Permanent Representation of Italy at the European Union.