Economy & Politics

ArcelorMittal withdraws from the United States

The steel group sold all of the capital of its US subsidiary to Cleveland-Cliffs. Enough to bring in around 1.2 billion euros to the struggling industrialist.

Patrick JACQUEMOT

Patrick JACQUEMOT

The steel group sold all of the capital of its US subsidiary to Cleveland-Cliffs. Enough to bring in around 1.2 billion euros to the struggling industrialist.

If ArcelorMittal is hit by the crisis on its Luxembourg sites, this is also the case in other parts of the world for the world’s leading steelmaker. So this Monday 100% of its American activities have just fallen into the hands of Cleveland-Cliff Inc. This is the largest US producer of iron ore pellets; a firm that recently also took over AK Steel, an American manufacturer of flat-rolled carbon steels, including stainless steel.

This latest acquisition involved a contract worth 2.6 billion euros. In the case of ArcelorMittal, the transaction will provide consideration in the total value of 1.2 billion euros. About a third of this counterpart would go directly to the coffers of the ailing steel group. Cleveland-Cliffs is now the largest producer of flat-rolled steel in North America, with combined shipments of approximately 17 million net tonnes in 2019.


Stahlwerk von Arcelor-Mittal in Differdingen

A few days after the announcement of the world number one in steel to cut more than 570 jobs, the meeting between union representatives, management and the government made it possible to set up “a first exchange of views”.


In a press release, Arcelor management specifies that the shares acquired as part of this buyback are intended firstly “to meet ArcelorMittal’s obligations under debt securities exchangeable into shares”, but also “to reduce its share capital”. ArcelorMittal intends to buy back, by March 31, 2021, shares for a maximum total amount of 430 million euros.

This choice has no impact on the future of the Grand Duchy’s production units, which will be debated duringa next tripartite. This meeting of social partners is still scheduled for Tuesday October 6 to discuss the fate of 15% of the workforce. In fact, in early September, the group announced a social plan that could impact some 570 employees.


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