Coal and steel producer Mechel bought Toplofikatsia Rousse, a coal-fired power station in Bulgaria, helping to secure sales of the fuel, according to an announcement Tuesday.
Mechel paid 52 million euros ($70 million) to boost its stake in the plant to 100 percent from 49 percent previously, the seller, Slovenia’s HSE, said on its web site.
Consolidation of the plant was a strategic move for Mechel because it is “among the three largest foreign customers of Mechel’s steam coal,” said Dmitry Smolin, an analyst at UralSib Capital. The acquisition will add about 70 percent to the installed capacity of Mechel’s power unit, according to UralSib.
(Bloomberg)
