On May 7, Luxembourg-based steel giant ArcelorMittal and the Czech government agreed to resolve all pending arbitration and litigation regarding the privatization of Nova Hut (renamed ArcelorMittal Ostrava) and Vitkovice Steel (renamed Evraz Vitkovice Steel).
Accordingly, ArcelorMittal agreed to an amicable settlement of all pending litigation and arbitration cases against the Czech Government and its related entities. In addition, Arcelormittal is going to pay $339 million to buy the Czech government's 10.97 percent stake in ArcelorMittal Ostrava, which will take the company's stake from the current 71.58 percent to approximately 83 percent.
As a part of the overall settlement agreement, ArcelorMittal Ostrava concluded a long-term supply agreement for hot metal to Evraz Vitkovice Steel.
Commenting on the agreement, ArcelorMittal Group management board member Sudhir Maheshwari said, "We are very pleased to have reached this agreement with the Czech government. It highlights the good relations between us and puts all past disputes behind us."
Meanwhile, ArcelorMittal Ostrava CEO Sanjay Samaddar added, "ArcelorMittal is committed to continuing as one of the largest foreign investors in the Czech Republic and maintaining its position as an outstanding corporate citizen."