ArcelorMittal completes investment agreement with Invitalia
ArcelorMittal announces the renaming of its Italian operations to Acciaierie d’Italia following an investment agreement with Invitalia, an Italian state-owned company.
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Rhea-AI Summary
ArcelorMittal announces the renaming of its Italian operations to Acciaierie d’Italia following an investment agreement with Invitalia, an Italian state-owned company.
Invitalia has made a €400 million equity investment, acquiring a 38% stake in AM InvestCo Italy, which will also be rebranded. A potential second investment of up to €680 million is planned to complete the purchase of Ilva's business, potentially raising Invitalia's stake to 60%. This strategic move positions Acciaierie d’Italia Holding for independent operations, with ArcelorMittal retaining a 40% stake.
Positive
- Investment agreement with Invitalia boosts capital by €400 million.
- Formation of public-private partnership enhances operational control.
- ArcelorMittal retains a minority stake of 40% ensuring continued influence.
Negative
- Conditions precedent for further investment may pose risks.
- Potential non-completion of Ilva asset purchase could result in capital loss.
Details
News Market Reaction – MT
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14 April, 2021, 16:15 CET
ArcelorMittal Italia to be renamed Acciaierie d’Italia
ArcelorMittal announces that it has today completed an investment agreement (the ‘Investment Agreement’) with Invitalia, an Italian state-owned company, forming a public-private partnership between the parties.
Invitalia has injected
The Investment Agreement stipulates a second equity injection by Invitalia, of up to
Going forward, Acciaierie d’Italia Holding will operate independently, and as such will have its own funding plans without reliance on ArcelorMittal. As a result, ArcelorMittal will deconsolidate the assets and liabilities (including the remaining lease and purchase liability) of Acciaierie d’Italia Holding (formerly AM InvestCo Italy) from its consolidated statement of financial position and will account its interest in the company under the equity method.
*The conditions precedent include: the amendment of the existing environmental plan to account for changes in the new industrial plan; the lifting of all criminal seizures on the Taranto plant; and the absence of restrictive measures – in the context of criminal proceedings where Ilva is a defendant – being imposed against Acciaierie d’Italia Holding or its subsidiaries. In case conditions precedent are not met, then the Acciaierie d’Italia Holding would not be required to complete the purchase of Ilva’s assets and its capital invested would be returned.
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