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Russia's steel major buys 50% stake in coal company for $675mln

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MOSCOW, December 9 (RIA Novosti) - Russia's largest steel producer Evraz Group has reached an agreement on the purchase of a 50% stake in coal major Yuzhkuzbassugol from its major shareholder Crosland Global Ltd. for $675 million, the holding said Friday.

Evraz Group will use its own funds and revenue from its recent Eurobond placement to finance the deal.

Evraz Group Non-Executive Director James Campbell said the purchase would help the company establish major mining enterprises specializing in coking coal and iron ore.

One of the world's 12 largest steel producers, Evraz Group is the major shareholder of an Italian and a Czech steel company and the owner of a number of metallurgical and mining plants in Russia.

In 2004, the holding produced 13.7 million tons of steel.

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