EC Approves Joint Control of llva by ArcelorMittal & Invitalla
The European Commission recently announced that it has approved the acquisition of joint control of AM InvestCo Italy, formally the tenant of the former llva plants, by ArcelorMittal and Italian state owned agency Invitalla. EC Antitrust gave its green light for Invitalia, Italy's agency for investment promotion and enterprise development, to form a public-private partnership for the former Ilva steel operations. EC said that the operation does not raise competition problems, given the absence of overlaps and vertical links between the activities of the companies in the European Economic Area.
Some good news for ArcelorMittal Italia arrived Jan. 29, as the
ArcelorMittal announced December 10 that it had signed a binding agreement with Invitalia for the public-private partnership. The agreement will result in a recapitalization of AM InvestCo, an ArcelorMittal subsidiary that signed the lease and obligation to purchase Ilva's business in 2018. According to the agreement signed last December, the Italian state will ass ume a 50% share In the management of the llva facilities through an Investment of EUR 400 million. During a second phase, starting from 2022, when Invitalla will Inject another EUR 680 million Into the company, the agency's stake will rise to 60%. ArcelorMittal will also invest up to EUR 70 million, to retain a 40% shareholding.