IDC made an informal offer worth about 8.5 billion South African rand (492 million US dollars), but ArcelorMittal refused to accept it, citing valuation and differences in restructuring.
Negotiations began at the end of 2023, when AMSA announced plans to close long products plants that supply structural steels for the mining and automotive industries. The situation escalated earlier this year when IDC provided a loan to delay the closure of enterprises. One of the key plants, the long products manufacturing facility in Newcastle, has already been closed, and the associated iron ore mine operated by Assmang is also idle.
The breakdown of negotiations increases pressure on AMSA's future, while the failure to strike a deal appears to exacerbate uncertainty for the thousands of workers and processing industries that depend on AMSA's long products. High energy costs, logistical problems, weak domestic demand and competition from cheaper imports all have a serious impact on business viability, SteelOrbis understands.
After completing exclusive negotiations, ArcelorMittal can now open its process to other potential investors or strategic alternatives.
