ArcelorMittal Agrees to Sell South African Unit to IDC in $610M Deal

ArcelorMittal has reached an initial agreement to sell its South African division to state-owned Industrial Development Corporation (IDC) for about R10 billion ($610 million). The deal would place a key steel asset under state control, marking one of the South African government’s most significant industrial interventions in years.

The IDC would pay about R3 billion in cash. It would also assume roughly R7 billion of ArcelorMittal South Africa’s debt.

The agreement follows negotiations that began in November 2023, after ArcelorMittal announced plans to close two crucial steel mills. The government intervened to preserve the local industry.

The deal is subject to a shareholder vote. Both parties aim to finalize it by the end of the year.

Shares in ArcelorMittal South Africa rose by as much as 21% in Johannesburg trading after the announcement.