ArcelorMittal Signs Agreement With Invitalia

   By Giulia Petroni 
 

ArcelorMittal said Friday that it has signed a binding agreement with Italian state-owned company Invitalia SpA resulting in a recapitalization of its subsidiary AM InvestCo, which is set to acquire Europe's biggest steel plant Ilva.

The Luxembourg-based steel-and-mining company said the deal will allow the parties to have joint control over AM InvestCo, with Invitalia holding a 60% shareholding and ArcelorMittal the remaining 40%.

Invitalia will make a first investment of 400 million euros ($484.4 million) in AM InvestCo by Jan. 31, 2021, subject to the approval of EU anti-trust authorities, according to ArcelorMittal.

A second tranche of up to EUR680 million will then be invested on closing of AM InvestCo's purchase of Ilva by May 2022. The deal is subject to the amendment of the existing environmental plan, the lifting of all criminal seizures on the plant and the absence of restrictive measures against AM InvestCo.

ArcelorMittal will invest up to EUR70 million in the subsidiary in order to retain joint control, it said.

Write to Giulia Petroni at [e-mail]

(END) Dow Jones Newswires

December 11, 2020 02:39 ET (07:39 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.