The EU antitrust review of the merger between Italian steelmaker Arvedi and troubled coil service centre ArcelorMittal CLN Distribuzione Italia (AMCLN) is expected to conclude on 2 or 3 October. The presentation of Arvedi’s industrial and financial plan to trade unions should follow, union sources tell Kallanish.
“We hope that the Arvedi group, which in the past has resolved disputes such as those in Trieste and Terni, will take over CLN and quickly bring the crisis to an end,” an Uilm union note says.
The next meeting is scheduled for 6 October at the Rome headquarters of the Ministry of Enterprises and Made in Italy (MIMIT), where the unions hope to meet Arvedi. The firm is expected to show the industrial plan to the social partners.
“We express strong concern over the current state of the company. The majority of the approximately 400 employees across the six plants have been on short-time work schemes for several weeks now, with a significant impact on workers’ wages. To date, we have not yet received the industrial plan and, as a result, many doubts remain over future employment levels and the nature of the investments Arvedi intends to make in AMCLN,” another Fiom union note states.
The company has been reducing its output due to financial hurdles, and part of the workforce has been put on temporary layoffs.
At the end of July, Arvedi submitted a binding offer to acquire the service centre. Earlier this year, ArcelorMittal was seeking full control of AMCLN, its joint venture with CLN. The process comes amid continued pressure on the European automotive sector, a key market for the business.
In May, the European Commission cleared the merger between ArcelorMittal and AMCLN Distribuzione Italia. However, the Italian government has invoked its “golden power” authority to impose conditions on the merger, suggesting the government has pushed for an Italian buyer instead of ArcelorMittal.
The Italian government blamed ArcelorMittal for failing to relaunch Acciaierie d’Italia – the former Ilva – and is now seeking €7 billion ($8.08 billion) in damages. This may have influenced the political dynamics around the merger.
The golden power is a tool the Italian government can use to block or impose conditions on corporate acquisitions considered strategically important for the country. This is the case even when the deal has been approved by European competition authorities (see Kallanish passim).
Contacted by Kallanish, Arvedi and ArcelorMittal did not comment before press deadline.
