Daily Management Review

The EC green-lights ArcelorMittal - Ilva deal


05/08/2018


The European Commission approved acquisition of the Italian steel producer Ilva by the international concern ArcelorMittal. This transaction will not have a negative impact "on the European industry, it employs millions of employees and consumers," said EU Commissioner for Competition Margrethe Vestager.



Nikolay Olkhovoy
Nikolay Olkhovoy
At the same time, the Luxembourg-based metallurgical giant should fulfill a number of conditions in order to complete the transaction, the Brussels department reported. To dispel doubts in conducting unfair competition, the world's largest producer would have to abandon a number of business lines, the statement said.

ArcelorMittal will have to sell some factories. A deal on the sale of ArcelorMittal Ostrava and other enterprises is expected to be completed before the end of this year.

ArcelorMittal’s plant in the Moravian-Silesian region provides 6,500 jobs. The enterprise annually produces more than 2 million tons of steel for the construction and engineering industries, exporting its products to more than 40 countries. In 2016, the net profit of the company was 1 billion 308 million korunas (more than 50 million euros). The plant in Ostrava, formerly known as Nova Gut, joined the group of Indian businessman Lakshmi Mittal in 2003.

According to ArcelorMittal’s management, the company has committed to sell several steel mills, in particular, in Belgium, the Czech Republic and Romania. In this case, these transactions must also be approved by the European Commission. "The sale of the plant to the buyer, who will then close it, will not be an acceptable solution," stressed Vestager.

The Italian authorities in 2017 gave their consent to ArcelorMittal’s proposal to acquire Ilva for 1.8 billion euros. The steel industry is one of the key industries in the EU. According to the European Commission, it employs about 360 thousand people.

source: dw.de






Science & Technology

Toyota is trying to revive demand for Prius

Deloitte: Smart speakers will show record sales in 2019

China takes the lead in quantum cryptography

Gartner: Chinese smartphones lead sales

Bitcoin Mining Worsens Global Warming Effect

Europe overtakes US by number of patents for self-driving car technologies

Samsung introduces display technology for folding screens

How retailers use technologies to increase sales

Facebook releases videochat devices Portal and Portal Plus

Smartphone makers will pay for pre-installing Google apps‍

World Politics

World & Politics

Merkel refuses yet another negotiation with May

Hong Kong refuses tiny apartments

Tumblr, Facebook wage war against adult content

Arrest of Huawei’s top manager endangers US-China trade truce

Has Macron given up to Yellow Vests?

What to expect from G20 Buenos Aires summit?

China steps up space race with the US

Climate change will cost US $ 500 billion a year