Italian Government Places Acciaierie d’Italia Under Extraordinary Administration
The Italian government has taken control of Acciaierie d’Italia, the troubled steel company, by placing it under extraordinary administration. This move transfers the management of the company to government-appointed commissioners, effectively removing shareholder control held by ArcelorMittal and Invitalia.
ArcelorMittal Steps Back as Involvement in Acciaierie d’Italia Ends
ArcelorMittal, in a statement released on Tuesday, acknowledged that the decision has brought an end to its participation in Acciaierie d’Italia, previously known as Ilva. The Luxembourg-based steelmaker has made a substantial investment of over 2 billion euros ($2.16 billion) in Acciaierie d’Italia since 2018.
ArcelorMittal, expressed that the situation could have been avoided if Acciaierie d’Italia had been able to secure traditional debt financing and access the working capital necessary for its ongoing operations. The company emphasized the reliance on equity injections from shareholders as the sole source of capital.
This development marks a significant setback for ArcelorMittal and highlights the challenges faced by Acciaierie d’Italia in achieving financial stability. The extraordinary administration by the Italian government raises questions about the future of the steel company and potential implications for the broader industry.
Analyst comment
Negative news. The Italian government’s takeover of Acciaierie d’Italia and the end of ArcelorMittal’s involvement indicate financial instability in the steel company. The market could see uncertainty and potential implications for the broader industry.
