ArcelorMittal MThas received merger clearance from the European Commission (“EC”) for AM Investco Italy Srl’s planned acquisition of Ilva S.p.A, marking a major milestone and a key step toward the deal closure.
EC’s move follows the conclusion of its Phase II probe into the proposed buyout of Ilva. The merger clearance has been granted on the basis that ArcelorMittal has committed to dispose of assets in Romania, Macedonia, Italy, Luxembourg, Belgium and Czech Republic.
In June 2017, ArcelorMittal and its partner Marcegaglia announced that AM Investco has reached a binding agreement with the Italian government regarding the lease and obligation to purchase Ilva. The transaction details of AM Investco’s plans for Ilva include a purchase price of €1.8 billion, with annual leasing costs of €180 million, which will be paid in quarterly installments.
ArcelorMittal believes that Ilva will prove to be a good investment without compromising the strength of its balance sheet. It will provide an opportunity to expand leadership and product offering in Italy, the second-largest steel producing and consuming market in Europe.
ArcelorMittal’s shares have moved up 6.1% over the past three months, outperforming the industry’s 4.7% gain.