ArcelorMittal, the biggest steel producer in the world, may sell the steel plant it owns in Romania, at Galati, to be able to acquire the biggest steel plant in Europe.

According to the international media, ArcelorMittal plans to sell several of its units in Europe so as not to breach competition and monopoly rules, local Mediafax reported.

On March 15, the group submitted an offer to buy the biggest still plant in Europe, Ilva, which is located in Italy. The transaction would amount to EUR 1.8 billion. The European Commission needs to approve the deal.

ArcelorMittal representatives said they sent a proposal for compensatory measures to the European Commission. ArcelorMittal Galati may be on the list of assets the group is willing to sell to complete the deal, according to sources within the Romanian company. The company’s management refused to comment on the rumor.

The Ilva plant in Taranto is the biggest steel mill in Europe and, when working at full capacity, could reach a production equivalent to the volume of steel obtained by Bulgaria, Greece, Hungary, Croatia, Slovenia, Romania and Luxembourg together, according to the European Commission.

Mittal Steel bought the former Sidex Galati steel plant from the Romanian state in 2001. At that time, the company was operating on a loss and had some 27,000 employees. The plant currently has some 5,400 employees.

In 2016, ArcelorMittal Galati had a turnover of EUR 772 million and EUR 60 million losses in 2016.

editor@romania-insider.com