ArcelorMittal Reached Investment Agreement with Invitalia

SEATTLE (Scrap Monster): World’s leading steelmaker ArcelorMittal announced that it has completed an investment agreement with Invitalia- the Italian state-owned company. The two parties have entered into a public-private partnership.

As per the deal, Invitalia has injected €400 million new equity into AM InvestCo Italy- the subsidiary of ArcelorMittal which runs the Ilva steelmaking assets in the country. The injection provides Invitalia with 38% shareholding in the company. In addition, it will have equal voting rights and joint control over the company. The agreement calls for renaming the the joint company AM InvestCo Italy as Acciaierie d’Italia Holding. Also, ArcelorMittal Italia will be renamed Acciaierie d’Italia.

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The agreement mentions a second equity injection by Invitalia of up to €680 million by May next year, subject to certain conditions. This will be utilized towards funding the completion of the purchase of Ilva’s business by Acciaierie d’Italia. This will boost Invitalia’s shareholding in Acciaierie d’Italia to 60%. Correspondingly, ArcelorMittal will invest up to €70 million in order to retain a 40% shareholding and joint control over the company.

In future, Acciaierie d’Italia Holding will operate independently. Furthermore, it will have its own funding plans.