ArcelorMittal Italia is forming a new entity, Acciaierie d’Italia in partnership with Italy’s state-owned company Invitalia to save the Ilva steel business.
Under the new agreement, Invitalia has injected €400mn ($482mn) worth of new equity into AM InvestCo Italy, which had signed the initial purchase agreement for Ilva. The deal gives Invitalia a 38pc stake in the company with equal voting rights and control. AM InvestCo is being renamed Acciaierie d’Italia Holding.
Invitalia will invest an additional sum of up to €680mn to finance the full purchase of the Ilva business by the new entity. All financing is expected to be completed by May 2022. ArcelorMittal will invest €70mn in the new entity, with Invitalia’s shareholding rising to 60pc after the second investment, while ArcelorMittal will retain the balance.
Acciaierie d’Italia Holding will operate independently and will not be consolidated within the ArcelorMittal financial statements, the company said on Wednesday.
Some elements that are being worked through include lifting criminal seizures on the Taranto plant, removal of restrictive legal measures, and changes in the new industrial plan to meet environmental plans. Moreover, Acciaierie d’Italia Holding would not be required to complete the purchase of Ilva’s assets and its capital invested would be returned if conditions are not met satisfactorily while working with local and national government entities.
On Wednesday, ArcelorMittal also announced that it will invest $1bn in upgrading its steel facilities in Ukraine to reduce pollution.
($1=€0.83)