MOSCOW, October 23 (RIA Novosti) - Russia's largest steel producer Evraz Group said Monday that the owner of steel multinational Duferco had resigned as a member of the Evraz board of directors, due to a conflict of interests involving his company and a Russian competitor, Novolipetsk Steel [RTS: NLMKG].
Bruno Bolfo, Duferco's board chairman, notified the company of his resignation on October 20 following an agreement between Duferco and Novolipetsk Steel on establishing a joint venture, Evraz said.
Bolfo had been a member of the Evraz board of directors from August 9, 2006, after his election at an extraordinary meeting of shareholders in July 2006, the company said.
Russia's Novolipetsk Steel earlier said it planned to establish a joint venture with Duferco Participations Holding Limited to purchase the Swiss-based multinational steel trader's assets in Europe and the United States.
The joint venture is expected to purchase assets in Duferco Farrell Corporation (U.S.), Carsid SA (Belgium), Duferco Clabecq SA (Belgium), Duferco La Louviere SA (Belgium), Duferco Coating SAS (France), Sorral SA (France), Acciaierie Grigoli S.p.a. (Italy), and Duferco Transformation Europe (France).
The deal could be completed by the end of the year if approved by antimonopoly bodies.
On October 13 Novolipetsk Steel, one of Russia's biggest steel and rolled stock producers, turned to the European Commission requesting permission to purchase assets in Duferco and Steel Invest.
In August this year Novolipetsk Steel bought a 100% stake in the Urals-based VIZ-Stal steel producer for $550 million. Duferco was the main shareholder of VIZ-Stal before the deal.
