IDC evaluates $491m bid for ArcelorMittal’s South Africa operations

Group 1 - The Industrial Development Corporation (IDC) of South Africa is considering a bid of R8.5 billion ($491 million) to acquire ArcelorMittal's operations in the country, which could conclude nearly two years of negotiations [1][5] - The IDC aims to attract global steel companies to South Africa by seeking strategic investors to operate the plants, with ongoing discussions for investments or joint ventures [2] - ArcelorMittal South Africa (Amsa) announced plans to close two key steel mills, Newcastle and Vereeniging, which are vital for the automotive and mining sectors [2] Group 2 - The facilities involved in the bid employ approximately 3,500 workers, with an additional 100,000 jobs linked to affiliated suppliers and customers [3] - The bid will be primarily funded by the IDC and will include repaying a loan from ArcelorMittal to its South African unit, along with a cash component [3] - Amsa operates a flat-steel plant in Vanderbijlpark and has idle facilities in Pretoria and Saldanha, as well as a closed iron-ore mine, with closures attributed to high power costs and government policies favoring competitors [4] Group 3 - No final decisions have been made regarding the acquisition, but sources indicate that ArcelorMittal is likely to accept an offer of this magnitude [5]