Liberty House to buy Arcelor’s 4 steel plants in Europe
The deal between Liberty House and ArcelorMittal is subject to approval by the European Commission and other local processes including the conclusion of information consultations with local and European Works Councils, the company said in a release.business Updated: Oct 13, 2018 12:09 IST
Sanjeev Gupta-led Liberty House on Friday announced conditional agreement to buy ArcelorMittal’s four steel plants in Europe, in a move that is expected to double its global production capacity.
The steelmaker said its binding offer to buy ArcelorMittal’s major integrated works at Galati in Romania and Ostrava in the Czech Republic, along with rolling mills at Skopje in Macedonia and Piombino in Italy, will take its total rolling capacity to over 15 million tonnes a year.
The deal is subject to approval by the European Commission and other local processes including the conclusion of information consultations with local and European Works Councils, the company said in a release.
Liberty secured preferred bidder status for the ArcelorMittal steel plants after the company put the profitable assets up for sale as part of an agreement with European Union (EU) competition regulators to clear the way for it to purchase Italian steel giant, Ilva—Europe’s largest producer of flat carbon steel.
The company said it worked closely with ArcelorMittal to prepare a transaction that satisfies the demands of the European Commission and creates a secure future for these businesses within the GFG Alliance—the parent company of Liberty House.
Executive chairman of the GFG Alliance, Sanjeev Gupta, said: “I am delighted to announce this landmark transaction, our biggest milestone to date. At a stroke these acquisitions would almost double the size of our workforce and global production capacity, giving us a strong presence in the heart of Europe’s key manufacturing regions”.
The plants have a combined rolling capacity of around 8 million tonnes a year and would give Liberty the ability to supply a full range of finished steels including; plate, hot rolled coil, cold rolled coil, galvanized sheet, tin plate, bar, wire rod, and rail.
The plants serve domestic and wider European markets, including automotive, construction, industrial machinery and oil and gas sectors, the company said.
First Published: Oct 13, 2018 12:09 IST