ArcelorMittal, Marcegaglia Offer to Buy Italy's Largest Steel Plant Ilva
June 30 2016 - 08:41AM
Dow Jones News
By Razak Musah Baba
LONDON--A consortium made up of steel firms ArcelorMittal (MT)
and Marcegaglia have submitted an offer to buy Italy's largest
steel plant, Ilva.
ArcelorMittal said Thursday that as part of the offer, it has
detailed its industrial and environmental plans for Ilva. The offer
also details a major capital expenditure program aimed at enhancing
Ilva's asset capabilities, increasing productivity levels and
improving health and safety performance, it said.
"We believe Ilva represents a compelling investment opportunity
for ArcelorMittal, without compromising our balance sheet strength,
as it would extend our leadership position and increase our product
offering in Italy, Europe's second largest steel manufacturing and
consuming market," Geert Van Poelvoorde, executive vice president
and CEO, ArcelorMittal Europe Flat Products, said.
The submission of the bid is the first step in a multi-stage
process that will see only the environmental part of the offer
discussed for the next 120 days. Following this period the
government will provide more clarity on the next steps of the offer
process.
"In recent years Ilva has been through some tough times that
have affected all of its stakeholders, including employees and the
local community. It is in need of a strong partner and immediate
investment to stem the significant losses and guarantee a
sustainable future," Mr. Van Poelvoorde said.
-Write to Razak Musah Baba at razak.baba@wsj.com; Twitter:
@Raztweet
(END) Dow Jones Newswires
June 30, 2016 08:26 ET (12:26 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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