Thailand-listed flat steelmaker G Steel Public Company Limited (G Steel) has announced that it has received a notification from the
Luxembourg-based steel giant
ArcelorMittal terminating the share subscription agreement between the companies.
ArcelorMittal had signed an agreement to acquire a 40 percent stake in G Steel in March 2011.
AecelorMittal said that it is terminating the agreement since G Steel has not fulfilled the conditions required to complete the transaction.
As previously reported by SteelOrbis, according to the agreement G Steel was going to provide a major manufacturing presence in the ASEAN region for
ArcelorMittal.
After
ArcelorMittal pulled out of the agreement, G Steel shares fell almost 15 percent to an eight-week low.