ArcelorMittal SA reaches initial takeover agreement with IDC - report

ArcelorMittal South Africa has reached an initial agreement with South Africa’s Industrial Development Corporation (IDC) for a takeover valued at around USD 606 mln, according to a Bloomberg report.

The transaction remains subject to further procedures, including a shareholder vote, and is targeted for completion by the end of 2026.

The takeover would give the state-owned development financier control of South Africa’s largest steelmaker. The IDC said it remained in talks to find a lasting solution to the company’s challenges and protect the country’s steel manufacturing capabilities.

Negotiations began in November 2023, when ArcelorMittal South Africa announced plans to close two steel mills producing grades used by the automotive and mining industries. The company has since closed two steel mills and an iron ore mine, while continuing to operate its Vanderbijlpark facility, which produces steel sheets and other products.

Following completion, the IDC plans to conduct a strategic review of the business and could seek industry partners to operate or invest in specific divisions.

ArcelorMittal South Africa is a major integrated steel producer headquartered in Vanderbijlpark, Gauteng. The company operates major production facilities at Vanderbijlpark, Newcastle and Vereeniging, covering flat steel, long steel and specialized steel products.