PODGORICA (Montenegro), August 16 (SeeNews) - Montenegro's government has given the go-ahead to state-owned power utility company EPCG [MNG:EPCG] to start talks for the acquisition of steel mill Zeljezara Niksic from Turkey's Toscelik, prime minister Dritan Abazovic said.
"EPCG assumes the commitment to negotiate the sale price and the way to execute the acquisition of Zeljezara with the Turkish company," Abazovic said in a video file posted on the website of public broadcaster RTCG on Monday.
You can subscribe to our M&A newsletter here
EPCG sees a good development potential in Zeljezara Niksic, RTCG quoted representatives of the power utility company as saying.
Earlier this year, Montenegrin diversified holding group Neksan also said it is interested in the acquisition of Zeljezara Niksic, but according to media reports, the negotiations were not successful.
Toscelik acquired Zeljezara Niksic in 2012 for 15.1 million euro ($15.3 million) after placing the best bid in an auction launched by the government. Toscelik suspended production activities at Zeljezara Niksic in March 2021, due to a drop in orders caused by the coronavirus pandemic. Last year, the Turkish company said it is in talks for the sale of the steel mill.
($ = 0.98559 euro)