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Tuesday, June 06, 2017, 10:35
ArcelorMittal-led consortium wins tender to buy Italy's ILVA
By Xinhua
Tuesday, June 06, 2017, 10:35 By Xinhua

A general view shows the Ilva steel plant in Taranto on March 18, 2015. (Alfonso Di Vincenzo / AFP)

ROME - The Am Investco Italy consortium won a tender offer to take over Italy's troubled steel giant ILVA, the Italian Ministry of Economic Development said on Monday.

The winning consortium is led by the world's largest steelmaker ArcelorMittal SA, along with Italian Marcegaglia industrial Group.

Am Investco offered 1.8 billion euros (US$2.03 billion) for buying loss-making ILVA, which is considered the biggest steel plant in Europe in terms of output capacity, the ministry stated.

The Am Investco's plan won over another bid submitted by rival consortium AcciaItalia (Steel Italy) led by Indian Jindal South West (JSW) Group.

Such outcome was expected, since the three special commissioners in charge of ILVA had already selected Am Investco's offer over the rival one in late May.

On Monday, Minister of Economic Development Carlo Calenda signed a specific decree to ratify their decision.

Adding to the purchase price, the winning consortium committed to an investment worth 2.4 billion euros, of which 1.15 billion euros "to reach the best environmental performances," Marcegaglia Group said.

Due to its toxic emissions in the air and waters, ILVA's major plant in the southern city of Taranto has in fact been associated with high rates of cancer among residents, and among children especially.

In terms of employment, Am Investco consortium's plan would cut the 14,220 current jobs down to 9.907 by 2018 and to 8,480 by 2023, the ministry said.

Currently, some 4,100 ILVA workers were already receiving redundancy payment.

Italian judicial authorities ordered the seizure of the company in 2012, following allegations that its toxic emissions affected public health in Taranto heavily.

The government then put ILVA under extraordinary administration regime in 2013, and entrusted its management to a board of special commissioners in Jan. 2015. 


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