The future of Acciaierie d’Italia (ADI), formerly known as Ilva, remains uncertain as the Italian government and ArcelorMittal failed to reach an agreement on Monday over the future injection of much needed funds into the company.
During a meeting held on Monday, the local government asked ArcelorMittal – the current majority shareholder with 62% – to find an agreement for a €320 million ($351m) capital increase to satisfy the steelmaker’s immediate needs, Kallanish notes.
The proposal by Italian authorities envisages a change regarding the company’s control, raising the shares under public control – held by Invitalia – to 66% and therefore making ArcelorMittal a minority shareholder going forward. The proposal has been rejected by ArcelorMittal and the government states it is now instructing its lawyers to understand how to proceed.
The lease of Taranto’s equipment from the administrator is set to expire on 31 May, which is when the equipment should be purchased, a source explained. The original expiration date in May 2022 was already postponed to this year. Given all the legal issues and bureaucracy, ArcelorMittal is said not to be willing to pay to purchase the equipment at this stage, and the Italian authorities will eventually need to find an alternative solution for the assets.
“The government is realising ArcelorMittal will not invest and that a consensual divorce is the best way to separate. The €320 million is nothing compared to what the steelmaker needs,” a source told Kallanish previously. “On 10 January, Taranto’s latest gas bill will be due but there are also many suppliers and shipping companies in need of payment, as well as vessels at the port that cannot unload material.”
This week, another meeting will be held between the local government and trade unions to discuss further options.
Emanuele Norsa Italy
