Italian steelmaker Arvedi has submitted a binding offer to acquire troubled coil service centre ArcelorMittal CLN Distribuzione Italia (AMCLN), according to sources familiar with the matter.
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 has blamed ArcelorMittal for failing to relaunch Acciaierie d’Italia, also known as former Ilva and is now seeking €7 billion ($8.17 billion) in damages. This may have influenced the political dynamics around the merger, Kallanish hears.
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, even when the deal has been approved by European competition authorities. A source says the government could invoke the golden power as AMCLN supplies strategic companies in the automotive sector, such as Iveco.
A union source says they expect Arvedi to preserve all 400 jobs and guarantee production continuity. Unions have been summoned to a meeting in Rome with authorities for the presentation of Arvedi’s industrial plan on 14 September.
Arvedi and ArcelorMittal declined to comment when contacted by Kallanish.
AMCLN operates several Italian service centre assets and subsidiaries, including Delna, active in metal storage and pickling, and Tamagnone, specialising in coil transport and storage.
