State-owned investment vehicle Invitalia is negotiating with joint venture partner ArcelorMittal to delay the completion of its acquisition of a majority stake in Acciaierie d’Italia.
According to the 2020 agreement between the two parties, Invitalia invested the first tranche of €400 million ($427m) last year in AM InvestCo, the ArcelorMittal subsidiary that agreed to purchase the former Ilva plant (see Kallanish passim). This provided Invitalia with joint control over AM InvestCo.
The second tranche of up to €680m is due to be paid on the closing of AM InvestCo’s purchase of Ilva, the deadline for which is end-May. This would raise Invitalia’s shareholding in AM InvestCo to 60%, giving it control over Acciaierie d’Italia.
The second tranche has however not been paid because the initial agreement stipulated the end of the court seizure of the polluting equipment at the Taranto steel mill as a condition for Invitalia to increase its shareholding. The court has however not yet released the assets in question.
According to informed sources, Invitalia is now negotiating with ArcelorMittal to postpone the May deadline to August 2023.
Acciaierie d’Italia declined to comment when contacted by Kallanish.
More free articles from our archive
More Global Prices
Take a Free trial
Get daily steel news redirect to your inbox each day,
along with prices.