ArcelorMittal has again offered to sell its stake after Rome’s government said it would bring Italy’s giant steel mills under state supervision, according to a letter cited by ANSA news agency on Saturday.
The letter was sent by Aditya Mittal, CEO of the global steel giant, to Italian Prime Minister Giorgia Meloni two days ago, ANSA reported.
ArcelorMittal declined to comment when asked by AFP.
Meloni’s hard-right government announced on Thursday that it had taken the first steps to bring the struggling former Ylva steelworks, one of Europe’s largest, under state supervision.
Talks with majority shareholder ArcelorMittal have collapsed over how to continue production and secure thousands of jobs at the factory in the southern city of Taranto.
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In the letter, Mittal said he was keen to find an “amicable solution” and avoid “unilateral and extreme” moves, ANSA said.
“We proposed to sell all of our shares to Invitalia (Italy’s state-owned investment group) at a price that reflected only a portion of our cash investment,” he wrote, but that proposal “is on hold. It is said to be “Tama”.
But if the government doesn’t want to do that, “we intend to remain a strategic minority partner until the government decides on a permanent solution.”
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The facility is being operated as a joint venture between ArcelorMittal, the world’s second-largest steelmaker, which owns 62%, and the Italian state-owned company, which will own 38% from 2021.
Rome considers the site a strategic asset, but the company that runs it, Acciaeri d’Italia, is heavily in debt.
Factories are at risk of having their gas cut off, with many suppliers and utilities unable to be paid.
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“We cannot afford to lose any time,” Italian Business Minister Adolfo Urso told reporters earlier.
“We have activated procedures that could lead to special administration within the next few weeks,” he said.
“On the other hand, if ArcelorMittal makes a proposal that is in line with what the government considers absolutely necessary to protect the factory and restart production, then of course it could be discussed among shareholders,” he said.
Special administration involves appointing a commissioner to manage the company and draw up a rescue plan pending the arrival of new investors.