ArcelorMittal calls off purchase of Italy's Ilva
2019-11-06 09:50:44 [Print]
ArcelorMittal, the world's biggest steelmaker, said Monday it is pulling out of a deal to buy struggling Italian firm Ilva after Rome decided not to grant it immunity from prosecution over a heavily polluting plant that was a central part of the acquisition.
The Taranto plant in the south of Italy is mired in controversy because experts believe that some 7,500 people have died in the surrounding area as a result of diseases linked to toxic emissions.
ArcelorMittal began leasing the plant -- with an obligation to buy it -- last November, and had plans to invest 2.4 billion euros ($2.7 billion) to revive it, including 1.2 billion euros to curb pollution by 2024.
The steel giant was given a period of legal immunity to bring the site up to environmental standards.
But after much prevarication, the Italian parliament revoked that decision and the company lost its immunity on November 3.
As a result, ArcelorMittal said it would pull out of the purchase altogether, arguing it had a contractual right to do so as its ability to operate had been "materially impaired".
The Taranto plant in the south of Italy is mired in controversy because experts believe that some 7,500 people have died in the surrounding area as a result of diseases linked to toxic emissions.
ArcelorMittal began leasing the plant -- with an obligation to buy it -- last November, and had plans to invest 2.4 billion euros ($2.7 billion) to revive it, including 1.2 billion euros to curb pollution by 2024.
The steel giant was given a period of legal immunity to bring the site up to environmental standards.
But after much prevarication, the Italian parliament revoked that decision and the company lost its immunity on November 3.
As a result, ArcelorMittal said it would pull out of the purchase altogether, arguing it had a contractual right to do so as its ability to operate had been "materially impaired".
