Russia’s Mechel to buy stake in Elga coal project for $461m

Image from Mechel via twitter.

Russian steel and coal producer Mechel has agreed to buy Gazprombank’s 34% stake in the Elga coal deposit for around 30 billion roubles ($461 million), two sources familiar with the matter told Reuters on Thursday.

Mechel is expected to pay for the stake within the next four months, one of the sources added. Mechel accepted Gazprombank’s offer to sell the stake in September.

Mechel declined to comment. Gazprombank said in a statement that it expected Mechel to “comply with its obligations under the law and signed documentation”, without commenting further.

($1 = 65.0790 roubles)

(By Anastasia Lyrchikova, Tatiana Voronova and Polina Devitt; Editing by Jan Harvey)

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