All postponed to 2024. The signing of thethe extension agreement between ArcelorMittal and Invitalia for the former Ilva, today Acciaierie d'Italia. As anticipated by FIRSTonline on March 1st, the iron and steel giant that manages the largest steel plant in Europe in Taranto, it will not change ownership or governance for the next two years and will remain in the hands of the giant ArcelorMittal, which currently holds 60% of the capital against 38% of Invitalia (controlled by the Italian State through the Mef).
The extension agreement between ArcelorMittal and Invitalia
“The Minister of Economic Development, Giancarlo Giorgetti has authorized the extraordinary commissioners of the Ilva group to sign the contract modification agreement framework with the companies of the Acciaierie d'Italia (ADI) group”, reads a note from the Mise.
“The draft agreement, on which the monitoring committee has given a favorable opinion, provides an extension to 31 May 2024 of the terms, previously set at 31 May 2022, for the occurrence of the conditions to which ADI's obligation to purchase the corporate complexes is bound. In relation to occupational profiles, investments for the modernization of plants and environmental redevelopment interventions, the commitments already envisaged in the business plan are confirmed, with the rescheduling of the timescales”, continues the note.
Under the terms, ArcelorMittal will continue to hold 60% of the company until 31 May 2024. Governance has also been confirmed for the next 24 months, with Lucia Morselli in the role of CEO, expressed as a private shareholder, and Franco Bernabé in that of president, expression of the Italian state. The industrial plan also remains standing which establishes, among other things, the replacement of coal-fired blast furnaces with electric furnaces powered by pre-reduced.
After these two years, we will proceed as planned. Invitalia, will pay 680 million euros and will rise from the current 38% to 60% of the capital of the company with ArcelorMIttal which manages the production sites in Italy, by purchasing the Ilva business branches.
The reasons for the postponement
The reason for postponing the change of control and governance is simple: the conditions precedent indicated in the investment contract of December 2020, which provided that the state should rise to 60%, have not yet been overcome. One above all: the lifting of the penal seizure of the hot area, placed under seals in July 2012 with subsequent faculty of use recognized due to Ilva's status as a national strategic company. The release from seizure was requested to the Court of Assizes of Taranto by Ilva's lawyers last March. The Court, however, has not yet ruled, but the decision could also be affected by the negative, albeit non-binding, opinion of the Public Prosecutor's Office.
In this context it should be recalled that the deadline for the implementation of the environmental requirements Hague it expires in August 2023. Only starting from September next year, therefore, will Ispra be able to verify whether the environmental investments indicated for having fewer polluting emissions and more sustainable steel production have been made or not. Hence also the need to establish a two-year extension and not shorter.
