ArcelorMittal, the world’s biggest steelmaker, has had to put six European assets up for sale, including its Romanian unit, to get approval from European competition authorities for its purchase of Italy’s giant Ilva plant.
Analysts at investment bank Jefferies, as quoted by Reuters, estimate the combined value of the assets up for sale is $752-940 million. ArcelorMittal’s steel plant in Galati is Romania’s biggest steel plant, with some 5,600 employees, and is the largest of the six assets. Bank of America-Merrill Lynch is handling the sale, which it aims to complete by the end of 2018, according to Reuters sources.
According to the European Commission, ArcelorMittal has agreed to provide an undisclosed amount of financing to the buyer of Galati to ensure that its steel output grows and the plant remains viable and competitive.
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Industry sources had previously said that Marcegaglia and Metinvest were planning a joint bid for ArcelorMittal’s Galati plant, but a Metinvest spokesman told Reuters the steelmaker would be bidding alone.
“We do not consider any partnerships or consortiums. Metinvest is a financially strong group (able) to participate on (a) standalone basis in the bid for any of the assets proposed by ArcelorMittal,” the Metinvest spokesman said.
End-April 2018, deputy prime minister Viorel Stefan said that after ArcelorMittal sells its Romanian plant in Galati, the steel output will increase, not shrink, in order to observe the European antitrust rules.
In 2017, ArcelorMittal reported a turnover of $68.7 billion and a steel output of 93.1 million tons.