ArcelorMittal expects to conclude by the second half (H2) of the year two asset sales as part of a merger deal with Votorantim Siderurgia in Brazil, according to media reports.
The company’s president for longs in South America, Jefferson de Paula, said negotiations to sell the assets are at an advanced stage. However, he did not provide the names of the assets the company plans to sell.
Brazilian anti-trust authority Cade said ArcelorMittal has agreed to sell its Cariacica long steel mill in the state of Espirito Santo, while transferring a lease contract at its Itauna plant in the state of Minas Gerais to another company.
SteelOrbis has learned Brazilian longs steelmaker Cipalam has already shown interest in the company’s assets, but didn’t name specifics.
As ArcelorMittal Brazil merges with Votorantim Siderurgia in Brazil, the remaining company, ArcelorMittal Brazil, will increase longs production by 2 million mt/year to 5-6 million mt/year.
Gerdau, ArcelorMittal’s closest competitor, has a 5 to 5.5 million mt/year capacity in longs, according to a media report from Reuters.