ArcelorMittal, Marcegaglia Offer to Buy Italy's Largest Steel Plant Ilva

By Razak Musah Baba

LONDON--A consortium made up of steel firms ArcelorMittal (MT) and Marcegaglia have submitted an offer to buy Italy's largest steel plant, Ilva.

ArcelorMittal said Thursday that as part of the offer, it has detailed its industrial and environmental plans for Ilva. The offer also details a major capital expenditure program aimed at enhancing Ilva's asset capabilities, increasing productivity levels and improving health and safety performance, it said.

"We believe Ilva represents a compelling investment opportunity for ArcelorMittal, without compromising our balance sheet strength, as it would extend our leadership position and increase our product offering in Italy, Europe's second largest steel manufacturing and consuming market," Geert Van Poelvoorde, executive vice president and CEO, ArcelorMittal Europe Flat Products, said.

The submission of the bid is the first step in a multi-stage process that will see only the environmental part of the offer discussed for the next 120 days. Following this period the government will provide more clarity on the next steps of the offer process.

"In recent years Ilva has been through some tough times that have affected all of its stakeholders, including employees and the local community. It is in need of a strong partner and immediate investment to stem the significant losses and guarantee a sustainable future," Mr. Van Poelvoorde said.

-Write to Razak Musah Baba at [e-mail]; Twitter: @Raztweet

(END) Dow Jones Newswires

June 30, 2016 08:26 ET (12:26 GMT)

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