OREANDA-NEWS. On May 24, 2007 OAO Severstal (RTS: CHMF; LSE: SVST) announced the purchase of a further 9 % stake in Lucchini SpA for ?85,200,000. Lucchini produces high-quality steels and long products in Italy and France and has a European distribution network. Its markets include automotive and railways, reported the press-centre of OAO Severstal.

Severstal purchased the additional stake in Lucchini through its 100% subsidiary Upcroft. According to the terms of the deal Severstal also will get a pro rata number of warrants converted into Lucchini shares. Severstal now owns 79,82% of the shares of Lucchini.

Commenting on the deal, Alexey Mordashov, Severstal Chief Executive, said, “We are delighted to be increasing our investment in Lucchini. It is a great business which contributed $3,3bn of revenues to Severstal in 2006. We plan to continue to invest in the business to further improve productivity and efficiency”.

Giuseppe Lucchini, Lucchini Spa President and shareholder, said “Such decision has been taken in harmony with Severstal  and with its main Shareholder, thanks to the good collaboration and to the human relationship that have been created for over two years”.