Arcelor Mittal, the world's largest steelmaker, has announced today it will sell Travi e Profilati di Pallanzeno and San Zeno Acciai, both located in northern
Italy, to
Switzerland's Duferco for Euro 117 million.
Travi e Profilati di Pallanzeno (TPP), which is a 100 percent-owned subsidiary of Arcelor, produces light and medium sections up to a size of 300 mm for the
construction industry, as well as wide
flats and angles for the same industry, along with track shoes and cutting edges for tractors and earthmovers.
The sale is a part of Mittal Steel's commitments to the European Commission made during the recommended merger of Arcelor S.A and Mittal Steel N.V. In line with its commitment to the European Commission, the company agreed to sell three European medium/heavy section mills: Arcelor's Stahlwerk Thüringen and Travi e Profilati di Pallanzeno (
Italy), as well as Mittal Steel's section and bar mill Huta Bankowa (
Poland). As reported by SteelOrbis last week, Arcelor Mittal announced the sale of Stahlwerk Thüringen on December 6, 2006.
As part of the same transaction Arcelor Mittal will also sell TPP's 49.9 percent stake in San Zeno Acciai - Duferco S.p.A. (SZA) to Duferco. Duferco already holds a 50.1 percent of the plant via its wholly-owned subsidiary, Duferdofin S.p.A.
The transaction, the closing of which is subject to European Commission approval and applicable antitrust clearances, is expected to be completed in early 2007.