65900
ArcelorMittal Group to Takeover Italy Steel Giant
ArcelorMittal Group to Takeover Italy Steel Giant

ArcelorMittal Group to Takeover Italy Steel Giant

ArcelorMittal Group to Takeover Italy Steel Giant

A consortium led by global steel giant ArcelorMittal has been chosen to take over Italy’s huge but struggling steel producer Ilva, the Italian government said. Economic development minister Carlo Calenda said in a statement that the offer was worth €1.8 billion ($2.02 billion).
ArcelorMittal’s partnership with Italy’s Marcegaglia had been competing for the takeover with a consortium built around the Indian company Jindal South West Steel, and reports late last week suggested the latter had upped its offer, AFP reported.
But officials said ArcelorMittal—accounting for 85% of the bid—and Marcegaglia, which makes up the rest, had prevailed with their bid. The two have signed a pre-accord with Italian bank Intesa Sanpaolo, which is set to join their consortium Am Investco Italy.
The government said ArcelorMittal had pledged to invest €2.4 billion in Ilva, in addition to the purchase price.
Ilva was nationalized and placed under special administration in 2015 after the Riva family, which owned it, was accused of failing to prevent toxic emissions from its Taranto site in southern Italy.
The government quickly opened a tender for the heavily indebted company, which used to produce a third of Italy’s steel output.
Officials said the state would now appoint commissioners to negotiate “possible improvements” to the takeover plan during the transition phase.
The Taranto site, which employs 11,000 people, is at the center of a huge legal case in which experts cited by prosecutors have charged that 11,550 people have died from toxic emissions in seven years.
The takeover has sparked fears of thousands of job losses, with unions saying that Am Investco Italy plans to cut Ilva’s overall staff of 14,200 to 9,400 next year and 8,400 by 2023.

Short URL : https://goo.gl/IACmce
  1. https://goo.gl/HSjf8y
  • https://goo.gl/a3BY1r
  • https://goo.gl/jyc6nA
  • https://goo.gl/xgIZ5L
  • https://goo.gl/BteWUh

You can also read ...

All three sides can’t agree on a few key issues.  Top of the list: The manufacturing of cars.
No meaningful progress is being made in NAFTA trade talks...
IMF Cautions Kenya on Rising Debt
The International Monetary Fund has cautioned that Kenya’s...
The rules say that EU countries should have budget deficits below 3% of GDP and public debt below 60% of GDP.
National budgets of six eurozone countries may break the...
AT&T-Time Warner Merger Case Politically Motivated
The US Justice Department’s lawsuit to block AT&T’s $85...
Credit Tightening Dominoes Threaten Asia With Hidden Risks
With Asia’s economies humming along, consumer prices rising...
Gold Inches Up as Dollar Dips
Gold prices crept up on Wednesday amid a softer dollar, with...
UK Slashes Growth Projections
Britain slashed its official projections for economic growth...
Mexico Boosts Minimum Wage
The bittersweet news for Mexico’s poorest workers: the...

Add new comment

Read our comment policy before posting your viewpoints

Image CAPTCHA
Enter the characters shown in the image.

Trending

Googleplus