German group ThyssenKrupp has formally announced in a press release the sale of Italy-based stainless steel mill Acciai Speciali Terni (AST) to the Italian steel group Arvedi.
The plant, which currently employs about 2,700 people, will therefore return to Italian ownership. In past weeks, Italian steelmakers Arvedi and Marcegaglia and Chinese group Baosteel had submitted binding offers, but the final head-to-head was all Italian, according to rumors circulating in the past few days.
The scope of the sale, ThyssenKrupp said, includes the associated sales organization in Germany, Italy and Turkey. The parties have agreed not to disclose the purchase price. The transaction is subject to approval by the Supervisory Board of ThyssenKrupp AG and merger control clearance. The closing of the transaction is expected in the first half of 2022. ThyssenKrupp is also examining a possible minority shareholding in the AST group. "Details of this will be negotiated up to the closing," said the company.
For Martina Merz, CEO of ThyssenKrupp AG, this sale, which is the fourth in the Multi Tracks segment, "shows once again clearly that we are working through our priorities and making decisive progress in the transformation of ThyssenKrupp. Speed in focusing the portfolio is crucial for a successful change process. At the same time, improving performance remains our most urgent task. Here too we are well on track and will not let up." Volkmar Dinstuhl, managing director of the Multi Tracks segment and chairman of AST, said, "We are pleased to have found a new owner for AST in the Arvedi Group, who will drive the development of the company with investments and innovations."
Giovanni Arvedi, founder and president of Arvedi Group, commented, "This transaction has a compelling industrial rationale for Arvedi Group, which becomes stronger by successfully completing its product mix. Furthermore, this transaction is strategic for the whole Italian economy and represents an initial step towards new exciting developments. We are very pleased that ThyssenKrupp is considering a potential minority shareholding in AST, guaranteeing continuity and showing trust in the know-how and capabilities of our group.” Arvedi's core business is primary steel production and processing. The company currently employs over 3,500 people.
After the announcement, the members of the AST board, including CEO Massimiliano Burelli, sent a letter to the employees of the Terni steel mills: "We are sure to deliver AST into good hands. In the course of the negotiations, we were able to ascertain that Arvedi offers ThyssenKrupp's stainless steel industry and, therefore, you, dear colleagues, better prospects for the future than ThyssenKrupp. Arvedi is a successful Italian company with leading solutions in the steel and stainless steel sector and is already an important customer of AST. The parent company is Finarvedi spa, an independently-managed Italian family business. With the acquisition of AST, Arvedi is a candidate to build a strong European entity that establishes itself with great ability in global competition and achieves a success that is destined to last over time. Arvedi is committed to investing in the stainless steel sector, to be prepared to face future challenges. Arvedi has presented important programs to develop AST's role in social and environmental issues. This will offer all of you great opportunities."
"The government has followed the whole affair with due attention and discretion and today we are satisfied with the positive result of the sale of the AST di Terni," stated economic development minister Giancarlo Giorgetti, adding, "This conclusion represents an important step for the enhancement and relaunch of Italian steel. “ He also welcomed the passing of ownership to an Italian group.