Liberty acquires European steel assets of ArcelorMittal for $740 million

Liberty Steel, part of Sanjeev Gupta’s global GFG Alliance, today announced the completion of its acquisition of seven major steelworks and five service centres of steel giant ArcelorMittal across seven European countries.

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 company stated in a release.
These seven sites together employ over 14,000 people and include the major integrated steel works at Ostrava in the Czech Republic and Galati 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 said it would 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 Green steel drive to create an economically and environmentally sustainable business, based on low-carbon production methods.
“This is an exciting and important milestone in GFG’s journey. We are extremely proud to welcome thousands of skilled and committed staff into the GFG family. We look forward to working together to create a bright and sustainable future for our group and our industry. 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,” Sanjeev Gupta, GFG executive chairman, said.
“These sites are well-positioned, efficient operations with competitive cost structures and we intend to build upon these strong foundations through a combination of judicious investments, changes to the production profile and synergies with our wider group,” Jon Bolton, Liberty Steel’s global business development director, added.
Wyelands Capital, the financial services arm of the GFG Alliance, advised Liberty Steel on the transaction while Jefferies International provided corporate finance advice.