“The agreement we have reached with ILVA’s unions meets the two major objectives we set out at the start of negotiations: to find an acceptable solution for every employee at ILVA and to reach an agreement that reflects ILVA’s economic reality and provides a sound base for it to have a sustainable future,” said Geert Van Poelvoorde, chief executive of ArcelorMittal Europe Flat Products. 

Under the agreement, which will have to be ratified by rank-and-file union members, ArcelorMittal has promised to hire 10,700 workers under terms of their existing labor contracts. 

“There is now a clear path towards closing the transaction and starting the important work of rehabilitating ILVA. We are keen to get started as soon as possible as ILVA requires urgent investment to address its environmental and operational challenges,” said ArcelorMittal chief executive Lakshmi Mittal. 

The deal for ILVA, which was announced in June 2017, had been held up through the transition of Italy’s government. The new government questioned the validity of the deal and had argued that it short-changed workers and didn’t do enough to protect the environment. ArcelorMittal later moved to sweeten its offer. 

Still, Italy Deputy Prime Minister Luigi Di Maio called for a formal review of the deal.  

But as the Reuters news service reports, ILVA was on the verge of running out of cash and with thousands of jobs at stake, Di Maio on Thursday said he would no longer oppose the acquisition, given the union agreement. 

“The deal means that public interest will not be served by annulling the tender,” Di Maio said, according to Reuters. 

ArcelorMittal said it expects the deal to close on 1 November.