Carlyle Group’s Steel Sale Collapses
Novolipetsk Steel terminates agreement to buy DBO Holdings for $3.5 billion; litigation expected.
November 17, 2008
The $3.5 billion DBO Holdings-Novolipestk deal collapsed after the buyer terminated its agreement to buy the Carlyle Group’s asset.
“DBO Holdings intends to aggressively purse all legal remedies at its disposal to enforce its rights under the merger agreement and fully expects to prevail in its pending lawsuit against [Novolipetsk],” the Carlyle-owned firm said.
On October 15, DBO Holdings filed suit against Novolipetsk in New York for failing to close its transaction in a timely manner; that suit is pending.
“We are disappointed that [Novolipetsk] has chosen to breach its obligations under the merger agreement,” said Daniel Pryor, Carlyle managing director. “We see many opportunities to continue building and strengthening the business. It has been a privilege to work with the company over the past three years, and I look forward to continued involvement.”
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