Malaysia's Southern Steel signs Ann Joo Steel acquisition deal

The Malaysian company Southern Steel Berhad (SSB) has announced the signing of an agreement with the local steel company Ann Joo Resources Berhad on the proposed acquisition of 100 percent of the issued share capital of the latter.

The transaction is governed by the terms of the purchase and sale agreement, which must be completed, and the approval of the shareholders of Southern Steel and Ann Joo. SSB will pay a deposit of 70 million rupees ($17.29 million) after signing the final agreement.

The proposed transaction includes a wholly owned subsidiary of Ann Joo Resources Berhad Ann Joo Integrated Steel Sdn Bhd.

A strategic step to strengthen its position in the extractive industry

SSB stated that the acquisition is consistent with its strategy to strengthen its position in the extractive steel sector.

Both SSB and Ann Joo operate in similar segments, and the transaction is expected to:

• enhance operational scale,
• optimize production capacity,
• increase procurement efficiency,
• will create an operational synergetic effect.