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 ...

WB Predicts Myanmar Growth at 6.7 Percent
Given the government’s efforts to accelerate reforms and to...
Economists say the rise in rates would be much steeper if markets believed that Italy was actually prepared to go through with the plans. So far (the market reaction) has been clear, but not extreme.
The European Union's budget commissioner says he hopes Italy's...
Poland to Become Less Dependent  on EU Funds
The Polish economy will become less and less dependent on the...
New export orders in European manufacturing PMIs have been slipping for months and are likely to fall further in May.
While the on-again, off-again threat of an all-in trade war...
South Korea has ranked 5th with 1.1% expansion.
South Korea’s economic growth rate ranked fifth among members...
Qatar Bans Goods From S. Arabia, UAE, Bahrain, Egypt
Qatar is stripping shop shelves of goods that come from rival...
Talent Deficit May Hit Major APEC Economies
Asia Pacific faces an imminent labor shortage of 12.3 million...
N. Korea Not Seeking US Aid
North Korea on Sunday fumed at US reports that the country is...

Add new comment

Read our comment policy before posting your viewpoints

Trending

Googleplus