Am Investco Italy Sends Withdrawal And Termination Notice From The Lease And Purchase Agreement For Ilva Business

Date : 11/04/2019 @ 1:03PM
Source : Dow Jones News
Stock : ArcelorMittal (MT)
Quote : 9.578  0.158 (1.68%) @ 4:40PM
ArcelorMittal share price Chart

Am Investco Italy Sends Withdrawal And Termination Notice From The Lease And Purchase Agreement For Ilva Business

Arcelor Mittal (NYSE:MT)
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   4 November 2019, 13:35 CET 
   Today, AM InvestCo Italy ('the Company') sent to Ilva's Commissioners a 
notice to withdraw from, or terminate, the agreement ('the Agreement') 
for the lease and subsequent conditional purchase of the business of 
Ilva S.p.A. and certain of its subsidiaries ('Ilva'), closed on 31 
October 2018. 
   The Agreement stipulates that, in the event that a new law affects the 
environmental plan for the Taranto plant so as to materially impair the 
ability to operate it or to implement its industrial plan, the Company 
has a contractual right to withdraw from the Agreement. Effective on 3 
November 2019, the Italian Parliament has removed the legal protection 
necessary for the Company to implement its environmental plan without 
the risk of criminal liability, thus justifying the withdrawal notice. 
   In addition, the decisions issued by the criminal court of Taranto bind 
the Ilva extraordinary Commissioners to complete certain prescriptions 
by 13 December 2019 -- a term the Commissioners themselves deemed 
impossible to meet -- failing which blast furnace number 2 will be shut 
down. Such prescriptions should also reasonably and prudentially be 
applied to the other two blast furnaces at the Taranto plant. The 
shutdown would make it impossible for the Company to implement its 
industrial plan, operate the Taranto plant and, generally, perform the 
   Other serious occurrences, independent of the Company's will, have also 
led to a situation of legal and operational uncertainty that has further 
significantly impaired the ability to carry out the necessary operations 
at Ilva and operate the Taranto plant. 
   All the mentioned circumstances also entitle the Company to terminate 
the Agreement under the applicable provisions and principles of the 
Italian Civil Code. 
   In accordance with the content of the Agreement, the Company has asked 
the extraordinary Commissioners to take responsibility for Ilva's 
operations and employees within 30 days from the receipt of the notice 
of withdrawal and termination. 
   About ArcelorMittal 
   ArcelorMittal is the world's leading steel and mining company, with a 
presence in 60 countries and an industrial footprint in 18 countries. 
Guided by a philosophy to produce safe, sustainable steel, we are the 
leading supplier of quality steel in the major global steel markets 
including automotive, construction, household appliances and packaging, 
with world-class research and development and outstanding distribution 
   Through our core values of sustainability, quality and leadership, we 
operate responsibly with respect to the health, safety and wellbeing of 
our employees, contractors and the communities in which we operate. 
   For us, steel is the fabric of life, as it is at the heart of the modern 
world from railways to cars and washing machines. We are actively 
researching and producing steel-based technologies and solutions that 
make many of the products and components people use in their everyday 
lives more energy efficient. 
   We are one of the world's five largest producers of iron ore and 
metallurgical coal. With a geographically diversified portfolio of iron 
ore and coal assets, we are strategically positioned to serve our 
network of steel plants and the external global market. While our steel 
operations are important customers, our supply to the external market is 
increasing as we grow. 
   In 2018, ArcelorMittal had revenues of $76.0 billion and crude steel 
production of 92.5 million metric tonnes, while own iron ore production 
reached 58.5 million metric tonnes. 
   ArcelorMittal is listed on the stock exchanges of New York (MT), 
Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish stock 
exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS). 
   For more information about ArcelorMittal please visit: 
Contact information ArcelorMittal 
 Investor Relations 
Europe                                                   +44 20 7543 1156 
Americas                                                  +1 312 899 3985 
Retail                                                   +44 20 7543 1156 
SRI                                                       +44 207543 1156 
Bonds/Credit                                              +33 171 921 026 
Contact information ArcelorMittal 
 Corporate Communications 
Phone:                                                      +442076297988 
ArcelorMittal Corporate Communications 
Paul Weigh                                               +44 20 3214 2419 

(END) Dow Jones Newswires

November 04, 2019 07:48 ET (12:48 GMT)

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