State-owned Industrial Development Corporation (IDC) has reportedly offered between R2.8 billion and R3 billion to acquire a controlling stake in financially struggling ArcelorMittal South Africa (AMSA). The offer is for an 80% stake in the company.
Negotiations are at an advanced stage, with most terms, including the price, reportedly agreed. The talks aim to prevent the full closure of key steel mills and preserve thousands of jobs in South Africa's steel manufacturing sector.
Progress is reportedly delayed by a dispute over the future involvement of AMSA's Black Economic Empowerment (BEE) partner, Likamva Resources. Likamva's 10-year agreement expires at the end of the year.
AMSA has been facing significant financial losses, prompting lengthy negotiations over a rescue package intended to ensure its survival.