Sanjeev Gupta’s steel group Liberty is set to acquire European assets of ArcelorMittal, as it pushes for expansion on the European mainland following a rapid build-up in the U.K.
The assets include integrated steel works in Romania and the Czech Republic as well as rolling mills in Macedonia and Italy and will take Liberty’s steel rolling capacity in Europe to about 10.5 million tonnes a year. The deal — currently subject to a conditional agreement following a binding offer from Liberty — would also be an important step for ArcelorMittal.
EU panel condition
The European Competition Commission required the disposal of certain assets as part of ArcelorMittal’s planned acquisition of Italy’s Ilva, Europe’s largest producer of flat carbon steel. ArcelorMittal is currently in negotiation to sell other assets — as required by regulators — including in Luxembourg and Belgium. The Ilva deal faced uncertainty earlier this year amid signs of opposition from the new Italian government.
However, following an agreement with unions in September, the administration indicated it no longer opposed the deal.
Liberty said it had worked closely with ArcelorMittal to prepare a transaction that met the regulatory demands and created a “secure future” for the businesses within the GFG Alliance — Liberty’s parent group — as well as with governments and unions. “Following completion, Liberty intends to continue to investing in the assets - which already have many leading-edge facilities – and aims to achieve greater competitiveness through low-carbon production and closer integration with added value downstream manufacturing,” said Liberty.
“These are high-quality assets with highly-skilled staff,” said Mr. Gupta, the executive chairman of GFG Alliance. “We intend to work with local partners to position ourselves strongly within the domestic supply chains of these fast-expanding national economies and become a pivotal part of a thriving European industrial sector.”