ArcelorMittal will sell 50pc stake in its wholly-owned shipping business, Global Chartering Ltd (GCL) to DryLog. The deal is expected to close before the end of 2019 and is expected to impact Arcelor’s net debt by $530mn, with $400mn on completion and a further $310mn due in early 2020. The deal is part of the company’s efforts to monetise $2bn from its assets by mid-year 2021. Arcelor’s net debt was $10.7bn in September.
On settlement of the deal, Global Chartering would be a joint venture of Arcelor and DryLog. GCL operates 28 dry cargo vessels of which 25 are on long-term leases and three owned outright. The company will continue to handle a share of ArcelorMittal’s shipments.
Updates on Ilva Plant
ArcelorMittal announced that AM InvestCo, the consortium led by ArcelorMittal, has signed a non-binding agreement with the Italian government to continue negotiations on a new industrial plan for Ilva on Dec 20. The new industrial plan’s scope comprises investments in green technology, including through a new company funded by public and private investors. Negotiations will continue into January, said Arcelor Mittal.