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ArcelorMittal Transferring Algerian Operations to State-Owned Company
10/07/2015 - The world’s largest steelmaker is exiting Algeria and handing over its shares in steel mills and mines there to the Algerian government.
In an announcement, ArcelorMittal said it has a preliminary agreement to transfer the stakes in the businesses to state-owned IMETAL.
Through the deal, it will turn over its minority positions in both ArcelorMittal Algeria, a flat and long products manufacturer, and ArcelorMittal Tebessa, an iron ore mine operator. ArcelorMittal owns 49 percent of ArcelorMittal Algeria. It also is turning over its majority interest in ArcelorMittal Pipes & Tubes Algeria. The company didn’t give any details about the financial terms of the deal.
It will continue to provide technical support for the development of the El Hadjar steel works.
“This agreement will allow the Algerian party to have total control of the three companies, ArcelorMittal Algeria, ArcelorMittal Pipes & Tubes Algeria and ArcelorMittal Tebessa, which will facilitate decision- making and mobilization of financial resources to ensure the success of the revamping and the start-up of operations in good conditions,” said Abdessalam Bouchouareb, Algeria’s Minister of Industry and Mines.
ArcelorMittal has been looking to cut costs in the face of slumping prices, slowing Chinese demand and inexpensive imports, according to BloombergBusiness. It has closed plants and laid off workers in Europe, sold stakes in businesses, and plans to announce a U.S. restructuring later this year, Bloomberg said.
The company said it plans to finalize the deal in the next several weeks.
Through the deal, it will turn over its minority positions in both ArcelorMittal Algeria, a flat and long products manufacturer, and ArcelorMittal Tebessa, an iron ore mine operator. ArcelorMittal owns 49 percent of ArcelorMittal Algeria. It also is turning over its majority interest in ArcelorMittal Pipes & Tubes Algeria. The company didn’t give any details about the financial terms of the deal.
It will continue to provide technical support for the development of the El Hadjar steel works.
“This agreement will allow the Algerian party to have total control of the three companies, ArcelorMittal Algeria, ArcelorMittal Pipes & Tubes Algeria and ArcelorMittal Tebessa, which will facilitate decision- making and mobilization of financial resources to ensure the success of the revamping and the start-up of operations in good conditions,” said Abdessalam Bouchouareb, Algeria’s Minister of Industry and Mines.
ArcelorMittal has been looking to cut costs in the face of slumping prices, slowing Chinese demand and inexpensive imports, according to BloombergBusiness. It has closed plants and laid off workers in Europe, sold stakes in businesses, and plans to announce a U.S. restructuring later this year, Bloomberg said.
The company said it plans to finalize the deal in the next several weeks.
