ArcelorMittal signs investment agreement with Invitalia
December 10 2020 - 6:10PM
ArcelorMittal signs investment agreement with Invitalia
11 December, 2020, 00:10 CET
ArcelorMittal announces that it has signed a binding agreement
(the ‘Investment Agreement’) with Invitalia, an Italian state-owned
company, forming a public-private partnership between the parties.
The Investment Agreement will result in a recapitalization of AM
InvestCo, ArcelorMittal’s subsidiary which signed the lease and
obligation to purchase agreement for Ilva’s business. Invitalia
will invest in AM InvestCo in two tranches:
- The first investment of €400 million will be made by 31 January
2021 (subject to EU antitrust authorization), providing Invitalia
with joint control over AM InvestCo;
- The second tranche of up to €680 million is payable on closing
of AM InvestCo’s purchase of Ilva’s business, which is subject to
the satisfaction of various conditions precedent* by May 2022, at
which point Invitalia’s shareholding in AM InvestCo would reach
60%. ArcelorMittal will also invest up to €70 million, to the
extent necessary to retain a 40% shareholding and joint control
over the company.
The updated industrial plan agreed between AM InvestCo and
Invitalia involves investment in lower-carbon steelmaking
technologies, including the construction of a 2.5 million tonne
Electric Arc Furnace. The industrial plan, which targets reaching 8
million tonnes of production in 2025, involves a series of public
support measures including ongoing government funded employment
support.
AM InvestCo’s governance would be based on the principle of
joint control starting from Invitalia’s first investment.
*The conditions precedent to closing include: the amendment of
the existing environmental plan to account for changes in the new
industrial plan; the lifting of all criminal seizures on the
Taranto plant; and the absence of restrictive measures – in the
context of criminal proceedings where Ilva is a defendant – being
imposed against AM InvestCo.
ENDS
About ArcelorMittal
ArcelorMittal is the world's leading steel and
mining company, with a presence in 60 countries and primary
steelmaking facilities in 18 countries. In 2019, ArcelorMittal had
revenues of U.S.$70.6 billion and crude steel production of 89.8
million metric tonnes, while iron ore production reached 57.1
million metric tonnes.
Our goal is to help build a better world with
smarter steels. Steels made using innovative processes which use
less energy, emit significantly less carbon and reduce costs.
Steels that are cleaner, stronger and reusable. Steels for electric
vehicles and renewable energy infrastructure that will support
societies as they transform through this century. With steel at our
core, our inventive people and an entrepreneurial culture at heart,
we will support the world in making that change. This is what we
believe it takes to be the steel company of the future.
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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