State Development Bank eyes majority stake in ArcelorMittal SA to prevent mill closures

VEREENIGING - The Industrial Development Corporation is considering acquiring a majority stake in ArcelorMittal South Africa to prevent the closure of its two major steel mills in Vereeniging and Newcastle. These plants are crucial to the country’s automotive, mining, and construction industries. The IDC, which currently holds 8.2% of Amsa, is willing to invest more capital in exchange for a controlling stake. However, Amsa has not yet received a formal offer requiring shareholder notification. The government has intervened by reviewing steel import tariffs and allocating R417-million from the Unemployment Insurance Fund to support nearly 3,000 affected workers. Meanwhile, Networth Investments is preparing a formal bid with IDC’s backing. An interim solution to keep the mills operational is being discussed, with IDC considering a strategy similar to its past rescue of Scaw Metals. Further developments are expected as negotiations continue.