NLMK and DBO Holdings Sign Settlement Agreement
03/12/2009 - Novolipetsk Steel signs settlement agreement with DBO Holdings regarding the companies’ dispute over NLMK’s proposed acquisition of John Maneely Co., a U.S.-based producer of steel pipe and tube.
Russian steel producer Novolipetsk Steel (NLMK) has signed a settlement agreement with DBO Holdings, Inc. regarding the companies’ dispute over NLMK’s proposed acquisition of John Maneely Co., a U.S.-based producer of steel pipe and tube.
NLMK had entered into an agreement to acquire John Maneely for $3.53 billion in August 2008, then terminated the deal in November 2008. John Maneely, the largest independent tubular manufacturer in North America, was originally formed in December 2006 by combining John Maneely Co. and Atlas Tube. The company holds leading positions in hollow structural sections, standard pipe, and electrical conduit through its Wheatland and Atlas Tube divisions.
The settlement agreement signed by NLMK and DBO Holdings provides for the full mutual release and discharge by both companies from their claims arising from the transaction. In addition, pursuant to the terms of the settlement agreement, NLMK is to pay DBO a settlement amount of US$234 million within four business days of signing.
