ArcelorMittal Signs Ilva Investment Agreement with Invitalia

ArcelorMittal announces last week that it has signed a binding agreement with Invitalia, a company controlled by the Italian State, forming a public-private
ArcelorMittal Signs Ilva Investment Agreement with Invitalia
ArcelorMittal Signs Ilva Investment Agreement with InvitaliaEurometal

ArcelorMittal announces last week that it has signed a binding agreement with Invitalia, a company controlled by the Italian State, forming a public-private partnership between the parties. The Investment Agreement will entail the recapitalization of AM InvestCo, the subsidiary of ArcelorMittal which signed the rental agreement with the obligation to purchase the Ilva business units. Invitalia will invest in AM InvestCo in two tranches

The first investment of EUR 400 million will be made by January 31, 2021, subject to the antitrust authorization of the European Union, assigning joint control over AM InvestCo to Invitalia

The second investment up to EUR 680 million will be due at the closing of the purchase by AM InvestCo of the Ilva business units, which is subject to the fulfillment of various conditions precedent, by May 2022. At that point, the participation of Invitalia in AM InvestCo will reach 60%. Furthermore, ArcelorMittal will invest up to Euro 70 million, to the extent necessary to maintain a 40% stake and joint control of the company.

The updated industrial plan agreed between AM InvestCo and Invitalia provides for investments in technologies for the production of low-carbon steel, including the construction of a 2.5 million tonne electric arc furnace. The business plan, which aims to reach 8 million tonneas of production in 2025, includes a series of public support measures, including government-funded employment financing.

The governance of AM InvestCo would be based on the principle of joint control starting with Invitalia's first investment.

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