Global steel giant ArcelorMittal is in advanced negotiations to sell its South African operations to the state-owned Industrial Development Corporation (IDC) in a deal valued at about $460 million, including debt.
According to sources, ArcelorMittal’s head of mergers and acquisitions, Ondra Otradovec, is in South Africa for final discussions with the IDC and the Department of Trade, Industry and Competition, according to Bloomberg.
The IDC, which recently completed a due diligence review, is reportedly seeking a private-sector partner to strengthen its bid.
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“The IDC has been engaging with ArcelorMittal and government stakeholders to find a sustainable solution,” a representative said.
ArcelorMittal declined to comment, citing a policy against “M&A speculation.”
The talks come as ArcelorMittal South Africa (AMSA) struggles with rising energy costs, rail disruptions, and cheap imports that have hurt profitability.
If finalized, the deal could prevent further industrial decline and make the IDC a central player in South Africa’s steel and manufacturing revival.
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