According to a report published by Bloomberg, a group of South African steel processors has approached the state-owned Industrial Development Corporation with a proposal aimed at helping take control of global steelmaker ArcelorMittal's local unit, ArcelorMittal South Africa (AMSA).
The proposal was submitted to IDC by a six-member industry group including unions and local steelmaker Allied Steelrode (Pty) Ltd. according to sources cited in the report. Discussions are private and ongoing.
Plant closures and IDC involvement
IDC has been in discussions with ArcelorMittal since November 2023, when the global steel group announced plans to close two steel plants at AMSA. The affected sites produce grades of steel considered important to South Africa's automotive and mining industries.
IDC is AMSA's second-largest shareholder, owning approximately eight percent of the company. It has previously provided loans to the steelmaker and has said it intends to increase its stake to maintain the country's industrial production capacity.
Proposed structure under review
Under the agreement, IDC will provide financing and increase its stake in AMSA. ArcelorMittal may retain the shareholding for a limited period of time under the proposed structure.
Discussions between IDC and ArcelorMittal
