ZAWYA-SNG: ArcelorMittal South Africa shares climb on promising IDC talks

About this update from Arcelormittal South Africa Limited

Staff WriterArcelorMittal South Africa said it was in advanced talks with the state-owned Industrial Development Corporation (IDC) that could lead to a potential transaction, driving its shares up nearly 10%.The loss-making South African unit of global steelmaking giant ArcelorMittal has been battling weak local demand, high electricity costs, as well as competition from local scrap metal recycling mini-mills and imports from China.The company mothballed its long-steel plants last year in an effort to stem losses.ArcelorMittal South Africa said in a statement that its parent company and the IDC "are engaged in advanced discussions to find a sustainable solution based on a non-binding term sheet regarding a potential transaction".The steelmaker did not disclose details of the proposed transaction, and the IDC was not immediately available to comment.Bloomberg reported that the IDC, which is ArcelorMittal South Africa's second biggest shareholder with 8.2%, had resumed talks to acquire the business after negotiations stalled last year over valuation.The IDC has, over the past two years, provided R2.6bn in loans to help ArcelorMittal South Africa stay afloat.All rights reserved. © 2026. Bizcommunity.com Provided by SyndiGate Media Inc. (Syndigate.info).Disclaimer: The content of this article is syndicated or provided to this website from an external third party provider. We are not responsible for, and do not control, such external websites, entities, applications or media publishers. The body of the text is provided on an “as is” and “as available” basis and has not been edited in any way. Neither we nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this article. Read our full disclaimer policy here.

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