Evraz, one of Russia's largest steel and mining companies, had an option to increase its stake in Highveld subject to approval by anti-monopoly authorities in South Africa and other countries.
Evraz CEO Alexander Frolov said that after the deal is closed the group will control over 30% of the world's vanadium production. "We do not seek to monopolize the market - this share is quite sufficient for us," he said.
Last July, Evraz Group S.A. and Credit Suisse bought 24.9% each in Highveld Steel and Vanadium Corporation Limited from Anglo American plc. mining group.
"Subject to regulatory approval, Evraz will be entitled to purchase Anglo American's remaining 29.2% stake, as well as Credit Suisse's 24.9% through separate option agreements. Should Evraz increase its interest beyond 35%, it will be obliged to make an offer to all Highveld shareholders," the company said previously.
Once option contracts are effected, Anglo American will have received $678 million for the 79% stake in Highveld. In January 2007, Evraz applied to increase its share in Highveld Steel and Vanadium from 24.9% to 79%.
