ArcelorMittal announced that AM InvestCo and authorized Ilva have signed an amendment to the original lease and purchase agreement for Ilva. The Amendment Agreement sets out the terms for the significant investment by Italian state-sponsored companies in AM InvestCo, which forms the basis for an important new partnership between ArcelorMittal and the Italian government. An investment in the share capital of the Italian Government in Ilva, which will be reflected in the agreement, which must be completed before November 30, 2020, will be at least equal to the remaining obligations of AM InvestCo with respect to the initial purchase price for Ilva. The amendment agreement is built around a new industrial plan for Ilva, which provides for investments in low-carbon steel technology.
In addition, AM InvestCo and authorized Ilva entered into a separate settlement agreement, according to which AM InvestCo agreed to withdraw its notice of cancellation of the original agreement, and authorized Ilva agreed to withdraw its request for an injunction, which was to be considered by the Civil Court of Milan March 6, 2020.
In case of non-fulfillment of the Investment Agreement by November 30, 2020, AM InvestCo has the right to withdrawal subject to an agreed payment.
The final closure of the lease and purchase is currently scheduled for May 2022 subject to various conditions.
