ArcelorMittal changes its name again: Acciaierie d'Italia is born. The French-Indian giant ArcelorMittal has announced the completion of the investment agreement with Invitalia, a company controlled by the Italian state, forming a public-private partnership between the parties for the steel industry.
In detail, Invitalia has invested 400 million euros in the share capital of AM InvestCo Italy, the company controlled by ArcelorMittal which will be renamed Acciaierie d'Italia Holding, and which has signed the lease and purchase contract for the Ilva business units, obtaining a 38% stake in the share capital and voting rights equal to 50%.
The co-investment operation by Invitalia aims to relaunch and reconvert, in a sustainable way, the Ilva steel site in Taranto consistent with the strategy, governed by the European Commission, to guarantee zero emissions by 2050.
Furthermore, the Investment Agreement – as stated in a note – provides for a second investment in the capital by Invitalia, up to 680 million euros, to finance the completion of the purchase of the Ilva business units by Acciaierie d'Italia, expected by May 2022.
Consequently, Italy will have the president of the new company in the person of Franco Bernabè, former Eni and former Telecom, and later also the CEO.
At the end of the operation, the participation of Invitalia in the share capital of Acciaierie d'Italia would rise to 60%, while ArcelorMittal, to maintain a 40% stake and joint control over the company, would have to invest up to 70 million euros.
As for the future, theAcciaierie d'Italia Holding will operate autonomously, with financing plans independent of ArcelorMittal. Consequently, the latter will de-consolidate the assets and liabilities (including the residual liability relating to the lease and purchase of the Ilva business branches) of Acciaierie d'Italia Holding from its consolidated financial statements and will account for its investment in the company according to the equity method.
