European steelmakers are interested in acquiring Celsa Huta Ostrowiec

At least two southern European companies submitted takeover bids, but both fell short of their target price

Polish steelmaker Celsa Huta Ostrowiec has received bids from at least two southern European long products producers. However, both offers were below the target price. Kallanish reports this with reference to market sources.

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 tonnes of rebar, beams and bars annually.

The plant has good prospects as Poland will start receiving new EU funds for construction projects in 2025, which should increase demand for steel.

This week, representatives of another European steel company are visiting Celsa’s British facility in Cardiff, which produces 1.2 million tonnes of steel a year and is worth €200 million.

In addition, another Polish plant, Huta Czestochowa, owned by Liberty and currently looking for a new owner due to insolvency, is also on the market. At least five potential buyers are bidding for this plant.

Celsa, Spain’s largest private industrial group, announced its intention to sell its assets in Poland, Norway and the UK in early 2024. Their total market value is estimated at €1.3 billion. The potential divestment of the company’s foreign operations is part of a new strategy that it is implementing on the advice of consulting firm Bain & Company.

In 2022, Celsa produced 5.52 million tonnes of steel. Finished product output was 1.18 million tonnes.