Emsteel is interested in the assets of Spanish Celsa

Emsteel, based in the United Arab Emirates, has taken an interest in the assets of Spanish steel company Celsa in Poland, the United Kingdom and Norway. This was reported by el Economista.

The total value of these assets is about €1 billion.

The sale of these foreign units, which is part of Celsa’s restructuring plan, began in February this year. It is unclear whether all three companies will be sold in one transaction, but such a sale could ease the situation for the Spanish steel company.

Celsa told the Spanish publication that it could neither confirm nor deny the information due to confidentiality issues. However, the procedure is ongoing and there is interest from potential buyers.

The UAE-based company, Kallanish writes, says it is aware of the recent press reports, but its policy is not to comment on rumors or speculation. However, they regularly evaluate organic and inorganic business opportunities and any relevant announcements will be made in accordance with regulatory requirements.

Emsteel, formerly known as Emirates Steel, is controlled by the sovereign wealth fund Abu Dhabi Developmental Holding Company (ADQ). According to el Economista, despite being one of the largest steel producers in the Middle East, 70% of its sales in 2023 were produced in the UAE, and its industrial presence is limited to the country of origin.

As GMK Center reported earlier, Poland’s Celsa Huta Ostrowiec has received bids from at least two Southern European producers of long products. However, both offers were below the target price.

Celsa is trying to sell some of its European assets, particularly in Poland and the UK, to raise funds to overcome financial difficulties. According to the sources, the company has set a price of €800 million for its Polish steel plant, which operates electric arc furnaces and produces about 1 million tons of rebar, beams and bars annually.