ArcelorMittal to sell downstream construction business: report

ArcelorMittal is allegedly exploring a sale of downstream construction activities as it divests peripheral operations, according to a media report monitored by Kallanish.  

Bloomberg suggests that the steelmaker is apparently working with advisers to prepare an auction of the company’s downstream construction segment involved in the supply of steel building systems. The sale of these is estimated to fetch about €700-800 million ($776-887m) the report suggests, citing people familiar with the matter. An ArcelorMittal spokesman contacted by Kallanish said the company would not yet comment on the matter.  

A sale is likely to occur in the fourth quarter the report further suggests, and is likely to interest both building materials producers and private equity firms. It is intimated that the downstream construction activities are considered to be non-core assets of the group.   

The segment in question describes its programme as steel building systems & solutions and sandwich panels for roofing, cladding, composite floors, light gauge structures, and modular housing. It has activities in 18 European countries and in the West Indies.