ArcelorMittal Italia to be Renamed Acciaierie d’Italia
ArcelorMittal announced that it has completed an investment agreement with Italian state-owned company Invitalia forming a public-private partnership between the parties. Invitalia has injected EUR 400 million equity into ArcelorMittal’s subsidiary AM InvestCo Italy, which signed the lease and purchase agreement for the Ilva business providing Invitalia with a 38% shareholding and equal voting rights with joint control over the company. Going forward the joint company AM InvestCo Italy is being re-named Acciaierie d’Italia Holding, and its main operating subsidiary ArcelorMittal Italia will be renamed Acciaierie d’Italia.
The Investment Agreement stipulates a second equity injection by Invitalia, of up to EUR 680 million, to fund the completion of the purchase of Ilva’s business by Acciaierie d’Italia, which is expected by May 2022 subject to certain conditions precedent.
At this point, Invitalia’s shareholding in Acciaierie d’Italia would increase to 60%, with ArcelorMittal to invest up to EUR70 million to retain a 40% shareholding and joint control over the company.
Going forward, Acciaierie d’Italia Holding will operate independently, and as such will have its own funding plans without reliance on ArcelorMittal. As a result, ArcelorMittal will deconsolidate the assets and liabilities (including the remaining lease and purchase liability) of Acciaierie d’Italia Holding (formerly AM InvestCo Italy) from its consolidated statement of financial position and will account its interest in the company under the equity method.