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ArcelorMittal group wins $2.02 billion Italy steel giant takeover

Staff Writer |
A consortium led by global steel giant ArcelorMittal has been chosen to take over Italy's huge but struggling steel producer Ilva.

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Economic development minister Carlo Calenda said in a statement that the offer was worth 1.8 billion euros ($2.02 billion).

ArcelorMittal's partnership with Italy's Marcegaglia had been competing for the takeover with a consortium built around the Indian company Jindal South West Steel, and reports late last week suggested the latter had upped its offer.

But officials said ArcelorMittal - accounting for 85 percent of the bid - and Marcegaglia, which makes up the rest, had prevailed with their bid.

The two have signed a pre-accord with Italian bank Intesa Sanpaolo, which is set to join their consortium Am Investco Italy.

The government said ArcelorMittal had pledged to invest 2.4 billion euros in Ilva, in addition to the purchase price.

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