Global steel giant ArcelorMittal has formalized the amendment agreement that was signed yesterday with the special government-appointed commissioners for Taranto-based steel plant Ilva through its subsidiary AM InvestCo. The agreement "outlines the terms for a significant investment by Italian state-sponsored entities into AM InvestCo, thereby forming the basis for an important new partnership between ArcelorMittal and the Italian government," reads ArcelorMittal’s statement. It went on to state that the equity investment by the Italian government in Ilva, in an agreement to be executed by November 30, 2020, will be at least equal to AM InvestCo's remaining liabilities against the original purchase price for Ilva.
The agreement entails a new industrial plan with the introduction of technologies for the production of lower-carbon steel and the construction of a DRI plant, which will be financed and operated by third-party investors, and an EAF which will be built by AM InvestCo.
If the government investment is not underwritten by November 30, 2020, AM InvestCo will have the right to withdraw from the Ilva takeover contract, subject to an agreed payment.
"Final closing of the lease and purchase agreement is now scheduled by May 2022, subject to various conditions precedent," said ArcelorMittal.