Aurubis Reaches Agreement to Sell Its Flat Rolled Products Business
The sale transaction is part of Aurubis’ plans to expand into other metals besides copper. The transaction would be subject to customary conditions, including approval by antitrust authorities.
SEATTLE (Scrap Monster): Germany-based Aurubis AG- the world’s largest copper recycler and the largest copper producer in Europe, has decided to sell the operating facilities that fall under its flat rolled products business segment. The financial details of the deal were not disclosed.
The sale transaction is part of Aurubis’ plans to expand into other metals besides copper. The transaction would be subject to customary conditions, including approval by antitrust authorities. Also, it requires the approval of Aurubis’ supervisory board.
According to statement issued by Aurubis, the completion of the term sheet will allow the company to proceed further with the negotiations. The proposed sale would cover flat rolled operations of the company in the US, Netherlands, Finland and Germany, in addition to copper processing centres in Slovakia, Italy and Britain.
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Aurubis CEO Juergen Schachler noted that the prospective deal aligns with the new corporate strategy that looks into expanding the business into other metals alongside copper. Earlier in January this year, the company had purchased the German copper wire and rod maker Deutsche Giessdraht by way of acquisition of 40% stake held by Codelco.
As part of the transaction, Aurubis has reached an agreement with Germany-based Wieland-Werke AG towards sale of its North Buffalo brass and copper products plant. The two companies are said to have signed a term sheet covering terms of transaction. The talks also include acquisition of the remaining 50% stake by Wieland-Werke AG in the German copper products company Schwermetall Halbzeugwerk.
The flat rolled products portfolio accounted for production of nearly 230,000 tonnes of copper and other alloyed products in 2017. It employed more than 1,700 people and had generated revenue of approximately $1.6 billion during the fiscal year 2016/17.
Meantime, continuing its tradition of reporting better results, Aurubis posted more than fourfold surge in Q1 of fiscal 2017/18, from € 18 million in previous year to € 79 million.
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