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The takeover involved a total consideration of €13 million ($17.7 million), and was settled entirely in cash, the Shanghai- and Hong Kong-listed steelmaker said.
Maanshan took ownership of all of Valdunes’ assets from June 1.
“The acquisition is strategically important for [Maanshan Steel] as it will facilitate the development of high-speed train wheel technology for the company, expand its international sales channels and improve its brand recognition,” the steelmaker said.
Valdunes, a producer of wheel, axles and wheel pairs, entered into bankruptcy protection in October 2013, and commenced a bankruptcy restructuring process in March this year. It became financially distressed due to a cyclic downturn in the industry.
It is principally engaged in the design and production of industrial products and auxiliary machinery for application in railway transportation, city transportation and other sectors.
In accordance with an auditor’s report prepared by KPMG, Valdunes’ total book value was €41.98 million ($57.19 million) in the fiscal year 2013 ended September 30 2013.
Maanshan Steel, located in the eastern Chinese province of Anhui, is one of the largest steel mills in China. Its major products include steel plate, section, wire rod and train wheels.
Maanshan Iron & Steel announced on Monday June 9 that it has taken over French wheel producer Valdunes.