ArcelorMittal and Invitalia complete investment deal, AM Italia becomes Acciaierie d'Italia

Thursday, 15 April 2021 12:23:09 (GMT+3)   |   Brescia
       

Italy-based state-owned agency Invitalia has announced that on April 14 Invitalia and ArcelorMittal completed the investment agreement signed last December, aimed at launching a new phase of sustainable development at the former Ilva plant in Taranto, Italy.

Accordingly, Invitalia has injected €400 million of new equity into AM InvestCo Italy, the ArcelorMittal subsidiary which signed the lease and purchase agreement for the Ilva business, providing Invitalia with a 38 percent shareholding and 50 percent of voting rights, with joint control over the company. The joint company AM InvestCo Italy will be renamed Acciaierie d'Italia Holding, while its main operating subsidiary ArcelorMittal Italia will be renamed Acciaierie d'Italia.

In its statement, ArcelorMittal said "The investment agreement stipulates a second equity injection by Invitalia, of up to €680 million, to fund the completion of the purchase of Ilva's business by Acciaierie d'Italia, which is expected by May 2022 subject to certain conditions precedent. At this point, Invitalia's shareholding in Acciaierie d'Italia would increase to 60 percent, with ArcelorMittal to invest up to €70 million to retain a 40 percent shareholding and joint control over the company."

"Going forward, Acciaierie d’Italia Holding will operate independently, and as such will have its own funding plans without reliance on ArcelorMittal. As a result, ArcelorMittal will deconsolidate the assets and liabilities (including the remaining lease and purchase liability) of Acciaierie d'Italia Holding (formerly AM InvestCo Italy) from its consolidated statement of financial position and will account its interest in the company under the equity method," ArcelorMittal stated.

 


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