Buyout firm CVC Capital Partners has been trounced by a local trade buyer in the €3.5bn ($4.7bn) bid battle for Austrian steel producer Böhler Uddeholm, after the country's chancellor objected to an approach by private equity.

Voestalpine, Austria's largest steelmaker, agreed to pay €3.52bn for the company, in a deal which will allay political fears that the company could become a target for financial engineering under the proposed CVC offer.