Daily Management Review

ArcelorMittal Agrees to sell off 4 European Steel plants to Liberty House


10/12/2018




ArcelorMittal Agrees to sell off 4 European Steel plants to Liberty House
Four European steel plants of steel and mining major ArcelorMittal would be sold out by the company to Liberty House as a part of the agreement on anti-competition with the European Commission (EU) against the acquisition of Ilva SpA (Ilva) by ArcelorMittal, the steel maker said on Friday. The company was mandatorily asked to reduce its portfolio on steel for its Ilva acquisition to pass through European anti-competition regulators.
 
The company "has received a binding offer from Liberty House Group for the acquisition of ArcelorMittal Ostrava (Czech Republic), ArcelorMittal Galati (Romania), ArcelorMittal Skopje (Macedonia) and ArcelorMittal Piombino (Italy)," said ArcelorMittal in a statement.
 
The completion of the announced deal of sale would be subject to the completion of the acquisition of Ilva by ArcelorMittal.
 
The company is also in various stages of negotiations with multiple parties for the sale of a few other of its assets – again as a part of the anti-competition agreement with the EU regulators, which includes ArcelorMittal Dudelange in Luxembourg, and a number of its finishing lines in Liege, Belgium, it further added in the statement.
 
On the other hand, in an announcement made by Liberty House, which is a part of Sanjeev Gupta's global GFG Alliance, the company informed its stakeholders about striking a conditional agreement with ArcelorMittal for the purchase of four of its European steel plants. These four plants have a total employee strength of  more than 12,500.
 
Following the purchases, the global metal manufacturing capacity of Liberty would be increased by more than double of its current capacity. Liberty enjoys a strong market position in the steel and aluminium market as a supplier in the United Kingdom. The company is also a manufacturer and supplier of steel to the automotive and some other sectors in the United States.
 
"At a stroke these acquisitions would almost double the size of our workforce and global production capacity, giving us a strong presence in the heart of Europe's key manufacturing regions," Executive chairman of the GFG Alliance, Sanjeev Gupta said.
 
GFG Alliance also said that there had been close coordination with ArcelorMittal in matters related to the preparation of the transaction that "satisfies the demands of the EU Commission and creates a secure future for these businesses within the GFG Alliance".
 
Those assets of Liberty that already have many leading-edge facilities would be further augment by the company through investments after the completion of the purchases, said Liberty House, and added that it has set an objective of increasing its competitive advantage by engaging in low carbon production and striking up strategy for close integration with its added-value downstream manufacturing.
 
Additionally, to optimise the value of its steel assets for the benefit of the regional and national economies, Liberty and the wider GFG Group would also aim to strike up greater coordination and cooperation with the respective governments, trade unions and other local stakeholders, said the company statement.
 
(Source:www.moneycontrol.com)






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