South Africa’s state-owned Industrial Development Corporation (IDC) has reached a preliminary agreement with ArcelorMittal to take control of its local subsidiary, ArcelorMittal South Africa (AMSA). The deal is valued at about 10 billion rand ($610 million) and is expected to be completed by the end of 2026.
Under the reported terms, IDC would pay about 3 billion rand ($183 million) in cash and assume roughly 7 billion rand ($426 million) of AMSA’s debt. The transaction has not been finalised and is subject to shareholder approval and other procedures.
ArcelorMittal, IDC and South African authorities have been in talks since November 2023, when AMSA announced plans to close two steel mills that supply products to the automotive and mining industries. IDC already holds a stake in the company and has been involved in efforts to address its financial difficulties and preserve domestic steel production.
After the deal is completed, IDC plans to conduct a strategic review of AMSA’s operations and may seek industrial partners to run or invest in individual business units. AMSA declined to comment on reports of the agreement. IDC confirmed that discussions are continuing to find a sustainable solution to the steelmaker’s challenges.
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