ArcelorMittal to Exit Investment in 3 Algerian Steel-Related Units
October 07 2015 - 7:20AM
Dow Jones News
By Alex MacDonald
LONDON--Steel giant ArcelorMittal (MT) said Wednesday it has
entered into a preliminary agreement with Algeria's state-owned
IMETAL to exit its equity stakes in three Algerian steel-related
units, as part of the steelmaker's plan to streamline its portfolio
of assets while the Algerian government continues to champion the
development of its steel industry.
The Luxembourg-based steelmaker will transfer its minority
shareholding in both ArcelorMittal Algeria and ArcelorMittal
Tebessa as well as its majority stake in ArcelorMittal Pipes &
Tubes Algeria to the IMETAL such that the Algerian government will
become the sole shareholder of the three entitites.
As part of the deal, ArcelorMittal has agreed to continue
providing technical support for the implementation of El Hadjar
Complex development plan.
The parties aim to finalize the agreement in coming weeks. The
agreements are aimed at reinforcing the Annaba development plan and
mining operations in Tebessa to ensure their long-term
sustainability.
"This agreement will allow the Algerian party to have total
control of the three companies...which will facilitate decision
making and mobilisation in particular of financial resources to
ensure the success of the revamping and the start-up of operations
in good conditions," said Davinder Chugh, head of ArcelorMittal's
Algerian operations.
-Write to Alex MacDonald at alex.macdonald@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
October 07, 2015 07:05 ET (11:05 GMT)
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