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ArcelorMittal Submits Proposed Divestment Package To The European Commission

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ArcelorMittal (NYSE: MT) has submitted a proposed divestment package to the European Commission (EC). The move is aimed at addressing the concerns raised by the EC during its review into the planned acquisition of Ilva S.p.A by the company.

The divestment package includes assets in Belgium, Romania, Czech Republic, Macedonia and the company's only galvanized steel plant in Italy, subject to final review and approval by the EC. Moreover, any sales will be conditional upon closure of the Ilva buyout. The EC is expected to give a final decision on the matter by May 23.

In June 2017, ArcelorMittal and its partner Marcegaglia announced that AM Investco has reached a binding agreement with the Italian government regarding the lease and obligation to purchase Ilva. The transaction details of AM Investco's plans for Ilva include a purchase price of €1.8 billion, with annual leasing costs of €180 million, which will be paid in quarterly installments.

ArcelorMittal believes that Ilva will prove to be a good investment without compromising on the strength of its balance sheet. It will provide an opportunity to expand leadership and product offering in Italy, the second-largest steel producing and consuming market in Europe.

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The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

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