Deal between ArcelorMittal Italia and Ilva commissioners delayed again

Friday, 28 February 2020 17:00:14 (GMT+3)   |   Brescia
       

The signature of the agreement between ArcelorMittal Italia and the Italian government-appointed special commissioners for troubled Taranto-based steel plant Ilva has been delayed again. The announcement was made by the Italian Ministry of Economic Development, where the signing had been expected to take place by the end of February, as established by the parties at the beginning of the month after obtaining from the Court of Milan the third postponement of the hearing on appeals filed in November, namely, in relation to the summons with which ArcelorMittal had announced its withdrawal from the contract for the takeover of Ilva, and also the urgent precautionary appeal with which the special commissioners for the former Ilva had opposed the withdrawal of the steel giant.

However, the postponement is said to be for "technical" reasons. The agreement has been reached and should be formalized in the first days of next week, or in time for the hearing of March 6 of the appeal by the special commissioners for Ilva against the withdrawal by ArcelorMittal. Yesterday, February 27, the representatives of Ilva in extraordinary administration handed over to the Ministry of Economic Development the application for authorization to sign the so-called "amendment agreement”, that is, the agreement that will modify the current purchase contract for Ilva. Among the views that must be acquired before the signing, there is that of the Ministry of Economic Development's supervisory committee, since it is an agreement that modifies the one previously signed.

According to sources, the new agreement will give time until the end of November this year to resolve some difficult issues such as the entry of the Italian state into the company's capital, its industrial plan, the intervention of public companies and banks, environmental measures, and an agreement with labor unions on employment. There will be a change in the terms and conditions for the purchase of the business units, with the deadline set in the purchase contract to be brought forward from August 2023 to May 31, 2022. By the end of the current year, the rent paid by ArcelorMittal will be halved from €180 to €90 million, while the difference will be paid at the time of purchase of the Ilva assets. The amending agreement will also grant ArcelorMittal the right to withdraw from the rental contract if an investment agreement is not reached by 30 November, local media reported.


Tags: Italy Europe 

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