Global steel giant ArcelorMittal is interested in buying part or all of the Italian steelmaker Ilva from the Riva family, as reported by Italian daily newspaper Il Sole 24 Ore.
Buying into Ilva would give ArcelorMittal greater control over the price of steel in southern Europe, says Il Sole 24 Ore. Accordingly, ArcelorMittal would prefer to buy a part or all of Ilva directly from the Riva family, however in case of refusal by the Riva family, ArcelorMittal may participate in a potential capital increase the group may pursue to pay for an environmental clean-up.
Ilva runs Europe's biggest steel plant in the southern Italian city of Taranto, but has been at the center of a lengthy environmental scandal. According to Il Sole 24 Ore, environmental clean-up and subsequent new industrial plan would cost €3 billion to carry out, €2.3 billion of which to be financed by banks and the remaining €700 million to come from shareholders.