In a statement, ArcelorMittal said its binding agreement with Invitalia will ultimately recapitalize the ArcelorMittal subsidiary that operates the business, but will reduce its shareholding to 40%.

ArcelorMittal said Invitalia’s initial investment of EUR400 million is to come by 31 January 2021, giving Invitalia joint control of the subsidiary. 

A second investment of EUR680 million is to come when the ArcelorMittal subsidiary acquires ILVA. ArcelorMittal originally agreed to acquire the business under the terms of a lease and purchase agreement. 

With the second investment, Invitalia’s stake would reach 60%, and ArcelorMittal has agreed to inject up to EUR70 million to retain its 40% share. 

A new industrial plan between ArcelorMittal and Invitalia envisions reaching 8 million metric tons of production by 2025 and investment in process technology, including a 2.5 million ton electric arc furnace.