The Competition Council has authorized the transaction through which UMB Steel, a company controlled by businessman Dorinel Umbrărescu, acquires the assets of the ArcelorMittal Hunedoara plant. The institution concluded that the operation does not raise issues for competition in the Romanian market.
The transaction had been signed earlier, and the selling price is 12.5 million euros, plus VAT, as reported by Profit.ro.
A Factory Closed After Months of Difficulties
The decision comes after the ArcelorMittal group, the world's largest steel producer, announced in October the permanent closure of production in Hunedoara. The company cited difficult market conditions and specified that the offers received until then were not accepted.
Production had already been halted since September 5, after an extended period of declining demand. The plant produced angles and profiles used mainly in energy, construction, and infrastructure.
What UMB Steel Acquires
The assets targeted by the transaction include production equipment and facilities, material stocks, as well as the land and buildings related to the factory in Hunedoara. Also included are certain real estate assets outside the industrial site.
The Competition Council stated that its analysis did not identify significant obstacles to the competitive environment nor risks regarding the normal functioning of the market.
Umbrărescu Expands His Industrial Empire
UMB Steel, part of the UMB group, is controlled by the Umbrărescu family, known mainly for their activity in road infrastructure. The group is one of the most important road and highway builders in Romania, but it already has operations in construction materials and energy production.
The company recently took a similar step by acquiring the assets of the steel plant in Oțelu Roșu, a unit with a tradition of over 220 years. At the same time, UMB Steel is also interested in taking over the Liberty Galați plant, the former Sidex.
Romania's Steel Industry in Full Restructuring Process
The Hunedoara transaction comes in a broader context of ArcelorMittal's withdrawal from Romania and the repositioning of the steel industry. The assets of the former group have been taken over recently by investors from Ukraine.
Thus, Metinvest group, controlled by Rinat Ahmetov, acquired ArcelorMittal Tubular Products Iași. In turn, Interpipe, a company owned by billionaire Victor Pinchuk, took over the pipe factory in Roman, with over 300 employees.