ArcelorMittal (MT) has reached an initial agreement with the Industrial Development Corp. of South Africa to sell its South African unit in a deal valued at about 10 billion rand ($610 million), Bloomberg reported Wednesday, citing people familiar with the matter.
The deal includes a cash component of about 3 billion rand, while the state-owned development financier would take on about 7 billion rand in debt accumulated by ArcelorMittal South Africa.
The transaction is subject to a shareholder vote, with the parties aiming to complete the deal by the end of the year, according to the news outlet.
ArcelorMittal and Industrial Development Corporation of South Africa did not immediately respond to MT Newswires' request for comment.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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