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Britain’s Liberty to Buy Plants in Romania, Macedonia

October 12, 201814:50
The UK headquartered Liberty House Group announced on Friday that it wished to purchase four steel plants from ArcelorMittal, including those in Romania and Macedonia. 
ArcelorMittal owner Lakshmi Mittal with European Commission chief Jean Claude Juncker. Photo: Olivier Hoslet/EPA

British metal producer Liberty House Group, owned by Sanjeev Gupta, announced on Friday that it has submitted a bid to ArcelorMittal to purchase four steel plants that Lakshmi Mittal’s group is selling as part of an anti-trust deal with the European Commission.

Liberty said it had reached an agreement with ArcelorMittal to buy ArcelorMittal Ostrava, in the Czech Republic, ArcelorMittal Galati, in Romania, ArcelorMittal Skopje in Macedonia and ArcelorMittal Piombino, in Italy.

The purchase has to be approved by the European Commission before it is enforced.

“I am delighted to announce this landmark transaction, our biggest milestone to date. At a stroke, these acquisitions would almost double the size of our workforce and global production capacity, giving us a strong presence in the heart of Europe’s key manufacturing regions,” Gupta said in the press release.

Arcelor Mittal, one of the biggest employers in southern Romania, announced on April 13 that it had sought permission from the European Commission to bid for Europe’s largest steel plant, in Ilva, and was willing to withdraw from the plants in Romania, Macedonia, the Czech Republic and Luxembourg to address the European Commission’s anti-trust concerns.

A press release by Arcelor Mittal on Friday said closure of the transaction was subject to the completion of the acquisition of Ilva, and conditional on EU approval and the conclusion of information consultations with local and European Works Councils.

“Negotiations are ongoing with parties regarding the sale of the other assets – ArcelorMittal Dudelange in Luxembourg and several finishing lines in Liege, Belgium – included in the divestment package,” the company explained.

ArcelorMittal is one of the world’s leading steel and mining company, and in 2017, it reported revenues of 68.7 billion US dollars.

The plant in Galati, however, has not made a profit for eight years and has slashed staff numbers while modernizing production lines and replacing people with machines.

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ArcelorMittal Sale Sparks Anxiety in Romania