GLOBAL steel giant ArcelorMittal has relinquished more than 15% ownership of its South African subsidiary, ArcelorMittal SA, to pave the way for a long-overdue black economic empowerment (BEE) transaction. The deal will ensure its recently improved relations with the government are further strengthened after years of acrimony. This also comes as the state-owned Industrial Development Corporation appears to be cooling on its earlier plans to build a $5bn steel mill, which would have competed with ArcelorMittal SA, as reported in the Financial Mail on Thursday. The proposed R2.3bn BEE deal announced on Wednesday with empowerment partner Likamva Resources will see the Luxembourg-based steel maker’s stake in ArcelorMittal SA reduced to about 53.72% from 69% once the transaction is concluded. The deal is expected to take effect on November 16 after the local steel producer’s annual general meeting, at which shareholders will vote on the proposed issuance of new ordinary shares for the em...
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