MT ArcelorMittal

   By Max Bernhard and Nathan Allen 
 

ArcelorMittal (MT.AE) said Monday that it has presented additional environmental and social commitments on its proposed deal to buy the Ilva steel mill in Taranto, Southern Italy, to a panel of Italian institutions and interested stakeholders.

Italy's government last week said it would open a formal review of ArcelorMittal's proposed takeover of Ilva, which could lead to the deal being scrapped.

Last week, ArcelorMittal said it accepted "all the substantive requests" by Italian authorities but didn't specify what the new conditions were. Italian media reported that the new agreement has enhanced job and environmental guarantees.

On Monday, the company said the commitments it presented include agreeing to significantly reduce emissions at the steel mill and to accelerate investments into a new EUR10 million research-and-development center in Taranto, where it plans to identify new techniques to lower the environmental impact from production.

The new commitments also include investments of up to EUR1 million into "local education, healthcare and entrepreneurs." ArcelorMittal said it would collaborate with local authorities to produce a "health impact assessment study at Taranto and the area surrounding the steel plant."

The company also pledged to engage local suppliers where possible and "favor the positive conclusion of the union consultation procedure, taking into account the sustainability of the industrial turnaround plan for Ilva."

ArcelorMittal agreed last year to buy Ilva for 1.8 billion euros ($2.1 billion) after it was placed under state supervision due to financial difficulties and environmental issues. The steelmaker was set to take over operations on July 1, but the Italian government delayed the handover date to Sept. 15, citing environmental, social, economic and employment concerns.

"We remain optimistic about progressing the final stages of the transaction, including the successful conclusion to negotiations with Ilva's unions, and to completing the acquisition as soon as possible," said Geert Van Poelvoorde, chief executive of ArcelorMittal Europe on Monday.

Write to Max Bernhard at max.bernhard@dowjones.com and Nathan Allen at nathan.allen@dowjones.com

(END) Dow Jones Newswires

July 30, 2018 13:09 ET (17:09 GMT)

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