Arcelormittal Stock Price, News & Analysis

On October 5, 2020, ArcelorMittal launched a tender offer to purchase outstanding 6.125% notes due 2025, with a total value of U.S.$249,886,000 tendered. The offer expired on October 13, 2020, and the company anticipates accepting the validly tendered notes on October 15, 2020, with cash payments expected on the settlement dates. BBVA Securities, Citigroup, HSBC, Mizuho, and Natixis served as dealer managers for this offer. The company aims to strengthen its financial position through this offer, which is part of its broader strategy in managing its debt obligations.

On October 5, 2020, ArcelorMittal commenced an invitation for bondholders to sell up to €1 billion in bonds. The offer was subject to conditions and expired on October 13, 2020. The company accepted offers totaling €263,583,000 for 3.125% Notes and €133,121,000 for 0.95% Notes, both accepted at significant purchase prices. The settlement is expected on October 15, 2020, with all accepted bonds to be canceled thereafter. The shares of ArcelorMittal trade under the ticker 'MT' on multiple stock exchanges.

On October 13, 2020, ArcelorMittal Europe unveiled its CO2 technology strategy aimed at providing green steel solutions. The company plans to deliver 30,000 tonnes of green steel by year-end, increasing to 120,000 tonnes in 2021 and 600,000 tonnes by 2022. Key strategies include utilizing hydrogen in DRI-EAF and blast furnaces and expanding Smart Carbon technology. Projects across various sites will reduce CO2 emissions significantly. Funding applications for these initiatives are being prepared for the EU’s Innovation Fund, supporting the goal of a 30% CO2 emissions reduction by 2030 and achieving net zero by 2050.

ArcelorMittal has initiated an invitation for bondholders to offer their bonds for cash, with a maximum acceptance amount of €1.0 billion. This includes the outstanding €750 million 3.125% Notes due January 14, 2022, and €500 million 0.95% Notes due January 17, 2023. The invitation period runs from October 5, 2020, to October 13, 2020. The company aims to reduce its gross debt by repurchasing these bonds, with the 2022 Bonds set at a purchase price of 103.6% and the 2023 Bonds at 99.8%. Settlement is expected on or around October 15, 2020.

ArcelorMittal has launched a tender offer to purchase all outstanding 6.125% notes due 2025 for a total principal amount of $500 million. The tender offer is set to close on October 13, 2020, at 5:00 p.m. New York City time. Holders of the validly tendered notes will receive a tender consideration of $1,170 per $1,000 principal amount plus accrued interest. The company aims to reduce its gross debt through early repayment of these notes, utilizing existing cash resources. The Offer is being managed by several major financial institutions.

ArcelorMittal announces a commitment to achieve carbon neutrality by 2050, expanding its previous 2019 pledge for its European operations. CEO Aditya Mittal highlighted the need for global cooperation to decarbonize the steel industry, which currently has a high carbon footprint. The company is exploring two low-emission steelmaking routes: Hydrogen-DRI and Smart Carbon. The former aims for commercial viability by 2030, while the latter could yield results sooner. ArcelorMittal stresses the importance of supportive policies to maintain competitiveness during this transition.

ArcelorMittal has announced a share buyback program under the AGM Authorization from June 13, 2020. This program allows the company to repurchase shares worth up to US$500 million between September 28, 2020, and March 31, 2021. The buyback is intended to meet obligations from debt exchangeable into equity or to reduce share capital. This announcement follows Cleveland-Cliffs' agreement to acquire ArcelorMittal USA, signaling a strategic move for the company amidst market dynamics.

On September 28, 2020, ArcelorMittal announced a definitive agreement with Cleveland-Cliffs Inc. to acquire its U.S. operations for $1.4 billion in cash and stock. The deal includes $505 million in cash and approximately 78 million shares of Cleveland-Cliffs common stock. Cleveland-Cliffs will also assume about $0.5 billion in net liabilities and $1.5 billion in pension obligations. This strategic move aims to enhance ArcelorMittal's North American positioning and enable a $500 million share buyback, improving the company's capital structure.

ArcelorMittal has announced plans to build an Electric Arc Furnace (EAF) at AM/NS Calvert, capable of producing 1.5 million tonnes of steel slabs. The construction is set to take 24 months and will create 300 jobs. This initiative is in line with the USMCA trade agreement and will enhance the facility's supply chain capabilities, giving it a competitive edge in the North American automotive market. AM/NS Calvert has seen over $200 million invested in strategic projects since its acquisition in 2014.