ArcelorMittal in talks over South Africa unit sale - Bloomberg

[Headquarters of ArcelorMittal France]
HJBC/iStock Editorial via Getty Images

ArcelorMittal's (NYSE:MT [https://seekingalpha.com/symbol/MT]) head of mergers and acquisitions is holding talks in South Africa with the country's top development finance institution and trade department about the potential sale of the company's local unit, Bloomberg reported Tuesday.

The executive's presence is a sign that the discussions between the steelmaker and South Africa's Industrial Development Corp. have accelerated, according to the report [https://www.bloomberg.com/news/articles/2025-10-14/arcelormittal-m-a-head-holds-talks-in-south-africa-over-unit-sale].

The IDC concluded a due-diligence study of ArcelorMittal South Africa Ltd. (NYSE:MT [https://seekingalpha.com/symbol/MT]), and is working with financial advisors on a possible bid of ~8.5 billion rand ($488 million) for the unit, including its current debt, Bloomberg reported last month [https://seekingalpha.com/news/4499945-arcelormittal-may-get-491m-idc-offer-for-south-africa-unit-bloomberg].

The IDC, which is ArcelorMittal South Africa's (MT [https://seekingalpha.com/symbol/MT]) biggest shareholder after its parent company, has been in talks with Arcelor and South Africa’s trade and industry ministry to prevent the closure of two steel mills that produce grades crucial to South Africa's automotive and mining industries.

ArcelorMittal (MT [https://seekingalpha.com/symbol/MT]) has attributed its decision to close the two mills - which employ ~3,500 people, with ~100,000 more working at their suppliers or customers - to high power prices, erratic rail service, low-priced imports and government policy that gives local competitors a discount on their raw material, steel scrap.

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