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Czech PM throws spanner in Liberty Steel deal to buy ArcelorMittal Ostrava

Steel News - Published on Wed, 22 May 2019

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Local media Hospodarske noviny reported that Czech Republic’s Prime Minister Mr Andrej Babis said that the state wants to buy ArcelorMittal in Ostrava for a crown as the British company Liberty House, which plans to buy the steelworks, is not transparent.. According to Mr Babis, Liberty House, a member of Gupta Family Group's Alliance of a British entrepreneur with Indian roots, Sanjeev Gupta, is not credible. He said "I do not like it, it is a non-transparent company, there are a lot of weird things. He behaves abnormally, he does not act as an investor when, for example, he does not solve the energy they brought out of the company in the past. We want to buy the company so that it can be driven properly. The state would buy it for a crown, I am talking about it with ArcelorMittal. If it couldn't be bought, we want to keep track of what's going on there.”

But Mr Babis did not rule out a tripartite contract between Liberty House, the state and trade unionists for the operation of the Ostrava business.

ArcelorMittal was given a green light from the European Commission to take over the giant Italian steelworks Ilva, provided that the Group sells several of its European smelters. So that effective competition remains in Europe. One of the businesses for sale is Ostrava.

ArcelorMittal Ostrava manufactures steel for the construction and engineering industries and is the largest manufacturer of road barriers in the Czech Republic. In addition to the Czech market, it supplies its products to more than 40 countries. With its subsidiaries, it has about 6,500 employees. In 2017, the company achieved a net profit of CZK 3.2 billion.

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Posted By : Sanju Moirangthem on Wed, 22 May 2019
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