- Thursday, April 25, 2024
By: Radhakrishna N S
LIBERTY STEEL, part of Indian origin Sanjeev Gupta’s global GFG Alliance, today (1) completed the acquisition of seven major steelworks and five service centres across seven European countries from ArcelorMittal.
The €740 million deal makes Liberty Steel one of the top ten producers globally, excluding China, with a total rolling capacity in excess of 18 million tonnes covering a wide range of finished products.
This is the largest single transaction undertaken by GFG and brings the Alliance’s worldwide workforce to nearly 30,000 across 30 counties.
The seven sites, which on Monday became part of Liberty, employ over 14,000 people and include the major integrated steel works at Ostrava in the Czech Republic and Galaţi in Romania as well as rolling mills at Skopje (North Macedonia), Piombino (Italy), Dudelange (Luxembourg) and two plants near Liege in Belgium.
The service centres are based in France and Italy.
These operations, with a combined rolling capacity of over ten million tonnes per year, supply steel to multiple sectors across Europe’s industrial heartlands, including: construction and infrastructure products, automotive, aerospace, energy, industrial equipment, consumer products and yellow goods.
Liberty Steel aims to boost sales from these sites by around 50 per cent over the next three years.
Today’s announcement triggers the start of a 100-day review during which Liberty Steel, working with local management, trade unions, customers and suppliers, will complete a comprehensive analysis of the businesses to explore investment opportunities and develop detailed plans to boost competitiveness, extend product range and support sales growth.
In the medium-term Liberty will explore opportunities to produce higher-quality steels with a more flexible production profile.
As part of a global coalition of industrial enterprises, these sites will join Liberty Steel and GFG’s greensteel drive to create an economically and environmentally sustainable business, based on low-carbon production methods.
Sanjeev Gupta, GFG executive chairman, said: “…These businesses will form a key part of our global steel strategy, of building a sustainable steel business, with a fully integrated value chain, from raw materials to high-value finished products that are distributed in high quality markets.”
Liberty Steel was advised by Wyelands Capital, the financial services arm of the GFG Alliance, on the transaction with corporate finance advice provided by Jefferies International Ltd.
