BDK Advokati has advised China's He Steel on the acquisition of core assets from Serbia's state-owned Steel Mill Smederevo in the process of privatization. The Asset Purchase Agreement was signed on Monday, April 18, 2016, and the purchase price was EUR 46 million, which, according to BDK, makes it one of the largest privatization deals in Serbia in the past 10 years.
The Steel Mill Smederevo is located downstream from Belgrade on the Danube River, and it was described in the past as "the backbone of Serbia's economy.” It was acquired by U.S. Steel in 2003 for USD 23 million, and the Serbian government bought it back for one dollar in 2012.
He Steel is the second largest global producer of steel. It intends to invest additional EUR 300 million in the upgrade of the Steel Mill capacities and construction of a new plant, reach a production target of 2.1 million tons, and keep all of the factory's 5,050 workers, the Serbian Ministry of Economy said on Tuesday. The sale is contingent upon regulatory approvals and other customary closing conditions, and is expected to be completed in the third quarter of this year.
The BDK team consisted of Partners Vladimir Dasic and Tijana Kojovic, with support from Senior Associate Milan Dakic, and Associates Slododan Trivic, Dorde Zejak, Bisera Andrijasevic, Lazar Radic, Anda Savis, and Irena Kalmic.
Editor’s Note: After this article was published, Serbia’s Gecic | Law firm announced that it had advised Steel Mill Smederevo and the Government of Serbia on the deal, working with the legal team at KPMG Serbia and international counsel Cleary Gottlieb (published by CEE Legal Matters on May 11, 2016).
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