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|24 April 2018, 5:31 PM|
By Edwig Ban
Owner ArcelorMittal can sell the Galati steel plant only with the explicit consent of the Romanian state and the European Commission will make sure that the plant's production increases after the deal, Deputy PM Viorel Stefan told a conference dedicated to large industrial energy consumers.
The deal to sell the ArcelorMittal stake to a potential investor is carried out under the supervision of the European Commission. The transaction does not concern only the Galati steel plant, but a 7-unit divestment package that ArcelorMittal proposed to the European Commission, six of which will have to be acquired by a single investor. This transaction will be monitored by a responsible mandated by the European Commission so that the result is an increase in the production of the acquired capacities and not a restriction thereof, because this would have undesirable effects as regards the competition on the cold and hot laminates market, Stefan said.
According to him, the contract for the privatisation of the former Sidex Galati plant requires ArcelorMittal to seek the Romanian state's consent for selling the plant.
This sale can only be done with the explicit consent of the Romanian state. There is a right mentioned in the privatization contract, stating that the deal can only be done with the consent of the seller, that is, of the Romanian state, the Deputy PM explained.
He also said that a European Commission representative will monitor the situation for the next five to ten years after the conclusion of the deal.
Security measures will be taken and all the necessary guarantees that the production of the Galati plant increases after this transaction and does not go down, and this will apply to all production assets that are subject to this transaction, the government official underscored.
The ArcelorMittal Group is about to get EU approval to acquire Ilva, the Europe's largest steel plant, after committing to sell more production facilities in Europe.
"In the current analysis of the European Commission on the acquisition of Ilva (Italy), Arcelor Mittal has put forward a proposal for a separation package to address the concerns the Commission raised during the verifications. The proposed separation package includes the following assets: ArcelorMittal Piombino (Italy's only galvanizing line), ArcelorMittal Galati Romania, ArcelorMittal Skopje Macedonia, ArcelorMittal Ostrava Czech Republic, ArcelorMittal Dudelange Luxembourg, Zinc-coating lines no. 4 and 5 from Flemalle; pickling, cold rolling lines and coated metal packaging in Tilleur, all in Liège, Belgium, "reads a recent release from ArcelorMittal.
In Romania, ArcelorMittal owns production facilities in Galati, Iasi, Roman and Hunedoara. The steel production of Arcelor Mittal in Romania is about 2 million tonnes per year.
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