GlobeNewswire Inc | Apr 14, 2021 10:15AM EDT

April 14, 2021

14 April, 2021, 16:15 CET

ArcelorMittal Italia to be renamed Acciaierie dItalia

ArcelorMittal announces that it has today completed an investment agreement (the Investment Agreement) with Invitalia, an Italian state-owned company, forming a public-private partnership between the parties.

Invitalia has injected 400 million new equity into AM InvestCo Italy, ArcelorMittals subsidiary which signed the lease and purchase agreement for the Ilva business, providing Invitalia with a 38% shareholding and equal voting rights with joint control over the company. Going forward the joint company AM InvestCo Italy is being re-named Acciaierie dItalia Holding, and its main operating subsidiary ArcelorMittal Italia will be renamed Acciaierie dItalia.

The Investment Agreement stipulates a second equity injection by Invitalia, of up to 680 million, to fund the completion of the purchase of Ilvas business by Acciaierie dItalia, which is expected by May 2022 subject to certain conditions precedent*. At this point, Invitalias shareholding in Acciaierie dItalia would increase to 60%, with ArcelorMittal to invest up to 70 million to retain a 40% shareholding and joint control over the company.

Going forward, Acciaierie dItalia Holding will operate independently, and as such will have its own funding plans without reliance on ArcelorMittal. As a result, ArcelorMittal will deconsolidate the assets and liabilities (including the remaining lease and purchase liability) of Acciaierie dItalia Holding (formerly AM InvestCo Italy) from its consolidated statement of financial position and will account its interest in the company under the equity method.

*The conditions precedent include: the amendment of the existing environmental plan to account for changes in the new industrial plan; the lifting of all criminal seizures on the Taranto plant; and the absence of restrictive measures in the context of criminal proceedings where Ilva is a defendant being imposed against Acciaierie dItalia Holding or its subsidiaries. In case conditions precedent are not met, then the Acciaierie dItalia Holding would not be required to complete the purchase of Ilvas assets and its capital invested would be returned.