Italy to Review and Potentially Scrap ArcelorMittal-Ilva Deal

By Nathan Allen

Italy's government is opening a formal review of ArcelorMittal's (MT.AE) proposed takeover of the Ilva steelworks, which could lead to the deal being scrapped, according to a statement issued late Tuesday by the Ministry for Economic Development.

"We have a duty to ascertain the facts after several critical issues have emerged," Economic Development Minister Luigi Di Maio said in the statement.

ArcelorMittal agreed last year to buy Ilva for 1.8 billion euros ($2.1 billion) after it was placed under state supervision due to financial difficulties and environmental issues.

The steelmaker was set to take over operations on July 1, but the Italian government delayed the handover date to Sept. 15, citing environmental, social, economic and employment concerns.

On Tuesday ArcelorMittal said it had accepted all additional commitments requested by Italian authorities and expected the transaction to close soon, driving its share price up by nearly 5%.

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(END) Dow Jones Newswires

July 25, 2018 04:55 ET (08:55 GMT)

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