ArcelorMittal has responded to a €7 billion ($8.4 billion) lawsuit from Acciaierie d’Italia (ADI) with a €1.8 billion damage claim, the company said on Thursday January 29.
The claim, filed by ADI’s extraordinary administration on January 12, 2026 with a writ of summons before the Court of Milan, alleges that ArcelorMittal induced ADI directors and local management to engage in mismanagement as part of a unified strategy to run down production, destroy the business and extract profits from Italy, causing damages estimated at approximately €7 billion.
ArcelorMittal categorically denied all these allegations, including claims that it unlawfully influenced management decisions or acted to the detriment of ADI and its holding company, Acciaierie d’Italia Holding SpA (ADIH).
The company said that since 2021 ADIH has been under joint and equal control with Invitalia, which is wholly owned by the Italian Ministry of Economy and Finance and was appointed by the Italian government to implement a public-private partnership aimed at relaunching and acquiring Ilva’s business.
ArcelorMittal said it fulfilled all its contractual obligations, invested around €2 billion in the business and did not illicitly influence local management. It added that a significant share of that investment was directed toward implementing the environmental plan required to comply with Italy’s Integrated Environmental Authorization (AIA).
The operating environment deteriorated shortly after the transaction closed, according to the company, due to what it described as adversarial conduct by Invitalia and legislative interventions by the Italian government.
ArcelorMittal added that in June 2025 it initiated international arbitration against Italy, alleging unlawful expropriation and unfair and discriminatory treatment.
“These actions caused serious harm to ArcelorMittal, leading to the loss of its investments and adversely affecting its broader interests in Europe, resulting in an overall damage claim exceeding €1.8 billion,” ArcelorMittal’s statement reads.
ADI representatives declined to comment when contacted by Fastmarkets on Friday January 30.
Background
ArcelorMittal acquired ADI, which was known as Ilva at the time, in 2018 when it took a 94.4% stake.
In 2019, less than a year after ArcelorMittal began leasing the assets, the government removed legal protections that the company said were necessary to implement the environmental plan without criminal liability. ArcelorMittal said this prevented the fulfillment of conditions precedent and led to its withdrawal from the lease agreement.
The withdrawal was later settled through an agreement with Invitalia, which subsequently assumed joint control of ADI.
Since 2021, ArcelorMittal’s share has been reduced to 62%, with Invitalia, the National Agency for Inward Investment and Economic Development owned by the Italian Ministry of Economy and Finance, holding the remaining 38%.
The Italian government took over the administration of ADI from ArcelorMittal in February 2024, Fastmarkets reported. ArcelorMittal said the move substantially expropriated its investment.
ADI is the largest steelmaker in Italy, with installed capacity for 8 million tonnes per year of pig iron and 10 million tpy of crude steel. But the steelworks produced just 3 million tonnes of steel in 2023, below the target of 4 million tonnes. In 2024, the company produced less than 2 million tonnes of steel, market sources said.
ADI was officially put up for sale by the Italian government in August 2024.
Multiple groups have expressed interest, with reports highlighting participants such as Baku Steel, Jindal Steel International and others.
