Union representatives of Italian steelmaker Ilva have given approval to the company's acquisition by ArcelorMittal, S&P Global Platts said quoting union sources on Thursday. Ilva, Italy’s largest mill, is also Europe’s largest single steel producer site.

The final agreement still must go before union members for referendum approval, but a joint statement is expected to be released later in the day, the Platts report said. ArcelorMittal declined to comment, it added.

The acquisition brings resolution to years of uncertainty for Ilva, whose future was unclear until ArcelorMittal stepped forward to buy it. According to a union source, ArcelorMittal will employ 10,700 workers through 2020, nearly 700 more than it had previously agreed. Another 2,000 will receive compensation under a separate agreement through 2023, the Platts report said.

ArcelorMittal plans to spend Euro 2.3 billion ($2.67 billion) boosting safety conditions at Ilva and curbing pollution. ArcelorMittal said it plans to increase Ilva's output to 6 million tonne(mt) /year of crude steel from 4.5 mt /year currently, and to systematically increase to 9.5 mt/year by 2023.

ArcelorMittal committed to shedding certain European assets in Italy, Romania, Macedonia and the Czech Republic to get approval from the European Commission's antitrust authorities for the Ilva takeover.

 

Source: economictimes.indiatimes.com

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