Twitter
Advertisement

ArcelorMittal consortium concludes Ilva lease, purchase pact

Global steel giant ArcelorMittal has said a consortium led by it has reached a binding agreement with Italian government regarding lease and purchase of steel plant Ilva.

Latest News
article-main
FacebookTwitterWhatsappLinkedin

Global steel giant ArcelorMittal has said a consortium led by it has reached a binding agreement with Italian government regarding lease and purchase of steel plant Ilva.

"ArcelorMittal and Marcegaglia announce that AM Investco Italy Srl (AM Investco) has concluded the exclusive negotiation phase and reached a binding agreement concerning the lease and obligation to purchase Ilva S.p.A and its subsidiaries with the Italian Government," ArcelorMittal said in a press release.

The ancillary documentation will be completed by June 30, it said, adding that Intesa Sanpaolo will formally join the consortium before transaction closing.

ArcelorMittal Chairman and CEO Lakshmi N Mittal said: "We are keen to get started and will now focus on reaching completion as soon as possible... We recognise the trust that is being placed in us as the new owner of Ilva and will take great care to provide Ilva with the responsible and capable leadership it deserves and that will be vital for its future success and sustainability."

Ilva is an important strategic acquisition for ArcelorMittal, CEO of ArcelorMittal Europe and group CFO Aditya Mittal said.

"It provides us with a significant production presence in a country in which we have no primary steelmaking capacity, and is complementary to our existing European business. I believe that it represents a unique opportunity for us, and am delighted that we have proved successful with our offer," he said.

"We have a lot of work to do once the transaction formally closes and we take up operational control of Ilva, but I believe that we can improve its performance quickly, and we expect a positive contribution to EBITDA in year one. Over the longer-term, there is no reason why Ilva s performance can t be brought in-line with the best performing assets within our European business," he added.

The company said the agreement is subject to, and will become effective upon, the satisfaction of certain conditions precedent, including information and consultation requirements.

The actual sale, and payment of the full purchase price, is subject to the lifting of seizures against certain Ilva assets by the Court of Taranto, it said.

The asset sale, and payment of the purchase price, will occur on the later date of the conclusion of the two-year lease period and the lifting of the seizure of certain assets by the Court of Taranto. Transaction closing is also subject to EU merger control approval.

"We are proud to have a chance to contribute to the relaunch of such a fundamental asset for the country, and look forward to working with the trade unions and all other stakeholders," Marcegaglia Chairman and CEO Antonio Marcegaglia said.

"I am confident that our consortium has all the attributes required to deliver a successful turnaround, which will ensure Ilva makes a positive contribution to the Italian economy, and each of the communities in which it operates," Marcegaglia added.

ArcelorMittal and Italian group Marcegaglia had earlier said that they have submitted an offer to acquire Italy's loss-making Ilva plant as the consortium was the best equipped to take on the challenges of the plant's turnaround.

ArcelorMittal is the world's leading steel and mining company with a presence in 60 countries and an industrial footprint in 19 countries.

 

(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)

Find your daily dose of news & explainers in your WhatsApp. Stay updated, Stay informed-  Follow DNA on WhatsApp.
Advertisement

Live tv

Advertisement
Advertisement