"Today marks an important step in the ILVA sales process. We are keen to get started and will now focus on reaching completion as soon as possible,” said ArcelorMittal chairman and chief executive Lakshmi Mittal in a statement.    

"We have a very sound understanding of what needs to be done to improve the performance of the company and, importantly, its relationship with stakeholders and local communities. Our vision is for ILVA to become a benchmark for modern integrated steelmaking, and this will be realized through the implementation of our industrial and environmental plans, backed up by significant investment,” he said. 

The consortium, which also includes Italian banking group Intesa Sanpaolo, is acquiring the business for EUR1.8 billion. It plans to initially lease the company’s assets at EUR180 million annually for at least the next two years. The lease payments will count as down payments toward the purchase price. 

The acquisition includes the Taranto steel works, the largest steelmaking facility in Europe. The consortium said it will invest EUR1.3 billion in ILVA facilities, with the focus on blast furnaces, steel shops and finishing lines.

It also will allocate an additional EUR1.1 billion for environmental remediation and new environmental equipment.  

Additionally, it will invest EUR10 million in a new research and development center in Taranto. 

The consortium plans to ramp up finished steel shipments to 9.5 million metric tons by 2023.