Severstal acquires metal trader A GROUP – Kommersant
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Severstal (MOEX: CHMF) Alexey Mordashova acquired the distribution business of A GROUP corporation, the company announced on April 4. And GROUP is one of the largest metal service companies and a leader among metal traders in the pipe industry. The transaction amount is not disclosed.
The A GROUP network of metal centers includes 24 warehouses. The corporation’s sales volume in 2023 amounted to more than 1.2 million tons of metal products, sales are carried out primarily to the construction industry.
According to Severstal CEO Alexander Shevelev, as a result of the transaction, the sales volume of Severstal’s distribution division will increase to 3 million tons in 2024, which will allow the company to become one of the three largest players in the market.
“Today, the A GROUP corporation has received a guaranteed opportunity for sustainable development for many years, and the metal trading industry is a powerful incentive to dynamically improve the entire metal supply system in Russia,” commented the founder and CEO of the company, Alexey Zaitsev.
Severstal, after Western sanctions, lost the opportunity to export to Europe. The deal will allow it to strengthen its presence in the domestic market. Previously, the company acquired for 4.7 billion rubles. two assets of the Ventall company, which produces metal structures.
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