The European Commission has granted clearance under the EU Merger Regulation to a joint venture between Russian steel producer Novolipetsk Steel and Duferco Participations Holding, which is listed in Guernsey, the Channel Islands, the EC said Tuesday.

Under the terms of the deal, NLMK and Duferco will acquire joint control of various companies currently under the sole control of Duferco and its affiliates. NLMK produces and sells carbon steel semi-finished and finished flat products and electrical steel products. Duferco produces and sells carbon steel semi-finished and finished flat and long products, and buys and resells electrical steel, stainless steel and high-alloy steel.

The joint-venture companies are active in the production and processing of carbon steel semi-finished and finished flat and long products, the EC said, adding that the operation was examined under the simplified merger review procedure.

In October, NLMK announced it was in talks with Duferco to create a joint venture that would acquire certain steel production facilities currently owned by Duferco in Europe and the US. The main companies expected to be acquired by the joint venture include Duferco Farrel (US), Carsid (Belgium), Duferco Clabecq (Belgium), Duferco La Louviere (Belgium), Duferco Coating (France), Sorral(France), Acciaierie Grigoli (Italy) and Duferco Transformation Europe (France), the company said at the time.

The transaction, subject to the negotiation and execution of a definitive agreement and competition and other approvals, is expected to be completed by the end of the year, the company said, adding that no further announcement was expected to be made until the execution of a definitive agreement for the deal.