Arcelor Mittal (NYSE:MT)
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6 Months : From Oct 2019 to Apr 2020
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
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.
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
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
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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