ArcelorMittal Pulls Out of Ilva Steelworks Acquisition

SEATTLE (Scrap Monster): ArcelorMittal has decided to pull out of its plan to acquire loss-making Ilva steel assets in Italy, following the removal of legal protection from prosecution offered to the company and its managers during the cleanup process. The steel giant has decided to return control of Ilva plant to the Italian authorities. The decision puts the future of Europe’s biggest steelworks and thousands of jobs at risk.

ArcelorMittal noted that it had contractual right to withdraw from the deal as the government legislation has ‘materially impaired’ its ability to operate.

The Italian government sources indicated that the government will summon company representatives for a meeting. They noted that government is unlikely to give consent for closing of Ilva plant. There is no legal basis for the contract to be cancelled, they added. Meantime, the trade unions criticized the government reform, stating that it has helped only to worsen the situation. Marco Bentivogli, secretary-general of the Italian metalworkers union urged the government to act urgently to solve the new crisis situation.

The opposition political parties too condemned the government decision. According to them, it is likely to severely impact tens of thousands of jobs as well as the industrial future of the country.