Negotiations between Luxembourg steel company ArcelorMittal SA and South African Industrial Development Corp. (IDC) regarding the potential sale of local ArcelorMittal South Africa Ltd. (Amsa) for 8.5 billion rand ($492 million) ended inconclusively. This is reported in a press release from ArcelorMittal.
From ArcelorMittal's point of view, the value of the deal is undervalued, and IDC is currently not ready to offer a large amount.
Negotiations between Arcelor, IDC and South African authorities began in November 2023 after Amsa announced plans to close two steel mills of critical importance to the automotive and mining industries. In early 2025, negotiations resumed when IDC, which owns about 8% of Amsa shares, provided the steel company with a loan to prevent closure.
The enterprises in Newcastle and Vereeniging employ 3.5 thousand employees and 100 thousand suppliers. In addition, Amsa owns a rolled steel plant in Vanderbilt Park (south of Johannesburg) and idle plants in Pretoria and Saldanha, as well as a closed iron ore mine.
The decision to close steel mills is attributed to high electricity prices, unstable rail links, cheap imports, and government policies that provide local competitors with discounts on raw materials.
ArcelorMittal is the largest metallurgical and mining company with headquarters in Luxembourg. The company specializes in the extraction of raw materials, the production of steel and the manufacture of various types of metal products for construction, automotive, energy and other industries. ArcelorMittal owns manufacturing facilities in 18 countries and sells products in 160 countries. The company was founded as part of the merger of Luxembourg-based Arcelor and India's Mittal Steel.
Industrial Development Corp. — a government financial institution that provides financing to various industries. The Corporation offers anti-crisis financing, energy financing, and partnership programs for companies in the automotive, chemical, infrastructure, mechanical engineering, and other sectors. The headquarters is located in Sandton (South Africa).
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