MT ArcelorMittal

By Alex MacDonald

LONDON--Steel giant ArcelorMittal (MT) said Wednesday it has entered into a preliminary agreement with Algeria's state-owned IMETAL to exit its equity stakes in three Algerian steel-related units, as part of the steelmaker's plan to streamline its portfolio of assets while the Algerian government continues to champion the development of its steel industry.

The Luxembourg-based steelmaker will transfer its minority shareholding in both ArcelorMittal Algeria and ArcelorMittal Tebessa as well as its majority stake in ArcelorMittal Pipes & Tubes Algeria to the IMETAL such that the Algerian government will become the sole shareholder of the three entitites.

As part of the deal, ArcelorMittal has agreed to continue providing technical support for the implementation of El Hadjar Complex development plan.

The parties aim to finalize the agreement in coming weeks. The agreements are aimed at reinforcing the Annaba development plan and mining operations in Tebessa to ensure their long-term sustainability.

"This agreement will allow the Algerian party to have total control of the three companies...which will facilitate decision making and mobilisation in particular of financial resources to ensure the success of the revamping and the start-up of operations in good conditions," said Davinder Chugh, head of ArcelorMittal's Algerian operations.

-Write to Alex MacDonald at alex.macdonald@wsj.com

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(END) Dow Jones Newswires

October 07, 2015 07:05 ET (11:05 GMT)

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