ArcelorMittal signs share purchase agreement for sale of 50% shipping business stake
December 23 2019 - 2:00AM
ArcelorMittal signs share purchase agreement for sale of 50%
shipping business stake
23 December, 08:00 CET
ArcelorMittal, the world’s leading steel and mining company,
announces it has signed a share purchase agreement with DryLog Ltd
(DryLog) for the sale of a 50% stake in Global Chartering Limited
(GCL), its wholly owned shipping business, and will subsequently
form a 50:50 shipping joint venture with DryLog. The transaction is
expected to close before the end of 2019.
GCL currently operates 28 dry cargo vessels, which range from
Supramax to Cape Size, 25 of which are on long-term leases and will
be transferred into the joint venture, with the remaining three
being owned outright.
The joint venture will benefit from the combination of the two
businesses respective knowledge and expertise, and ArcelorMittal’s
extensive annual cargo commitments, a portion of which will be
handled exclusively by the JV. It will also benefit from DryLog’s
ability to optimise transport solutions and its technical and
commercial vessel management expertise. These factors will enable
the joint venture to grow its operations and become a significant
player in the international shipping industry.
The stake sale and JV formation will ultimately impact
ArcelorMittal’s net debt by $530 million, with $400 million on
completion and a further $130 million due in early 2020.
The transaction is part of ArcelorMittal’s commitment to unlock
up to $2 billion of value from its asset portfolio by mid-year
2021.
ENDSAbout
ArcelorMittal
ArcelorMittal is the world's leading steel and
mining company, with a presence in 60 countries and an industrial
footprint in 19 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 networks.
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:
http://corporate.arcelormittal.com/
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ArcelorMittal Corporate Communications |
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