Seeking Alpha

ArcelorMittal considers buying Italian steelmaker Ilva

  • ArcelorMittal (MT) fell more than 5% today after reports said it among groups considering buying Italian steelmaker Ilva, depending on the cost of an environmental cleanup plan ordered by the government.
  • Any eventual offer could be hindered by the cost of the plan ordered by the government to reduce pollution levels around the Taranto plant, estimated to reach ~€3B ($4B).
  • Some analysts are skeptical that MT shareholders would back further investments following a recent purchase of a ThyssenKrupp steel plant in the U.S.
Comments (1)
  • marpy
    , contributor
    Comments (1068) | Send Message
     
    while the TK deal makes a lot of sense and should have MT shareholders smiling, I am not so sure that the IIva deal is such a good idea. In IIva you are dealing with a chronic money loosing plant in a country with a seriously screwed up government and a heavily socialist agenda. One thing for sure though is that nobody knows steal like Mittal and his management team as such I would expect that if they can not make it work, they will not do the deal. JMO
    11 Feb 2014, 09:50 AM Reply Like
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