Name of client: Tenaris
Transaction value: US$ 240,000,000.
Description of the matter: On February 5, 2019, Tenaris S.A. (NYSE, Buenos Aires and Mexico: TS and MTA Italy: TEN) entered into a joint venture agreement with PAO Severstal, a leading Russian steel producer of high value-added flat, long and tubular steel products, to build a welded pipe plant to produce OCTG products in the Surgut area, West Siberia, Russian Federation. Tenaris will have a 49% interest in the joint venture company, with Severstal owning the remaining 51%. The plant, which is estimated to require an investment of USD240 million and a two-year construction period, is planned to have an annual production capacity of 300,000 tons. Through this joint venture, Tenaris and Severstal aim to serve the growing market for welded OCTG pipe products in Russia and neighboring countries. The commencement of the project is subject to regulatory approvals and other customary conditions.
Main participants:
Counsel to Tenaris S.A.
o Mitrani Caballero & Ruiz Moreno: senior associate Gabriela Vizcaino on all corporate and contractual matters. Additionally, partners Felicitas de Achaval, José María Aballone, senior associates María Paula Diaz, Rita Colombo and Agustina Avila assisted on labor, commercial, compliance and IP matters.
o White & Case: acted as local counsel through partners Andrei Donstov and Irina Dmitrieva, and associate Ksenia Tyunik.
Counsel to PAO Severstal
o In-house counsel Veronika Kundruseva.
o Freshfields Bruckhaus Deringer LLP: acted as international and local counsel through partner counsel Nikolay Seliakov and associate Dimitry Sheludyaev.