Global steel giant to exit South Africa with $460m takeover imminent.
According to people familiar with the matter, Ondra Otradovec, ArcelorMittal’s head of mergers and acquisitions, is currently in South Africa for high-level discussions with both the IDC and the Department of Trade, Industry and Competition (DTIC). His presence is seen as a sign that negotiations have accelerated.
The IDC recently completed a due diligence review of ArcelorMittal South Africa (AMSA) and is reportedly considering a $460 million bid, which includes the company’s existing debt.
The state-owned financier is also said to be seeking a private-sector partner to bolster its offer.
The potential deal comes as AMSA grapples with rising energy costs, erratic rail logistics, and cheap imports that have battered its profitability.
In late 2023, the company announced plans to shut down its Newcastle and Vereeniging plants, which together employ about 3,500 workers and support roughly 100,000 indirect jobs across the steel value chain.
Industry analysts say the IDC’s intervention could prevent a major blow to South Africa’s manufacturing and mining sectors, both heavily reliant on AMSA’s long-steel products.
AMSA, once known as Iscor Ltd., was acquired in 2003 by Indian billionaire Lakshmi Mittal’s Mittal Steel Co., which later merged with Arcelor in 2006 to form ArcelorMittal. The company remains one of Africa’s largest steel producers, with facilities stretching from Vanderbijlpark to Saldanha.
Source: Africabusinessinsider
