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ArcelorMittal's Ilva bid stalled – Report

Steel News - Published on Tue, 05 Dec 2017

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Reuters reported Italy’s Puglia and Taranto regions last week lodged a court appeal against ArcelorMittal’s takeover of Ilva which, if successful, could scupper the deal and lead to the temporary shutdown of Europe’s largest steel plant. Meanwhile, EU antitrust authorities have opened a full inquiry which is likely to see ArcelorMittal’s junior bid partner, Italian steel processor Marcegaglia, exit the deal to buy Ilva.

But a rally in European steel prices, which have soared by some 75 percent since the start of last year, is unlikely to be derailed by either outcome, steel industry participants told Reuters following the recent developments. Tomasso Sandrini, chief executive of steel service center S.Polo Lamiere, told Reuters “It doesn’t change anything to have Marcegaglia out of the consortium. With Marcegaglia holding just a 6 percent share in the partnership, it would have had a negligible influence on EU steel prices as it would in any case have been unable to co-ordinate its sales strategy with ArcelorMittal-Ilva.”

EU antitrust authorities in November upgraded their investigation into whether the proposed purchase of Ilva by the consortium led by ArcelorMittal, the world’s biggest steelmaker, will lead to steel price hikes.

A few weeks later, the Puglia and Taranto regions filed an appeal against the takeover that counter-intuitively put the EU steel sector in a win-win situation in the short term, investment bank Jefferies says.

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Posted By : Nanda Koijam on Tue, 05 Dec 2017
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