Steel giant ArcelorMittal (MT - Analyst Report) announced that it has inked a sale and purchase agreement with H.E.S. Beheer N.V. to sell its 78% interest in European port handling and logistics company ATIC Services S.A. (ATIC) to HES Beheer.
With this transaction, HES Beheer will own 100% stake in ATIC where it currently holds a 22% stake. The transaction is expected to close by Jun 2014 subject to customary closing conditions. The transaction is consistent with ArcelorMittal`s strategy of selective deposal of non-core assets.
ArcelorMittal, the world’s leading steel company, hosted its Investor day in Mar 2014. The company reaffirmed its 2014 outlook of 3.5% to 4% growth in the global steel market.
ArcelorMittal highlighted its key value drivers and key enablers including a strong balance sheet, active portfolio management, a decentralized organizational structure and the best talent. The company stated that its medium-term earnings before interest, tax, depreciation and amortization (EBITDA) will be $150 per ton.
Meanwhile, the company will streamline its management and reorganize its steel businesses by geography effective Jan 1, 2014. External reporting will follow this structure under the new segments: ACIS, Brazil (and neighboring countries), Europe, Mining and NAFTA.
ArcelorMittal also provided updates on its development and investment projects. The company announced revisions to Phase II of its project in Liberia, which will enable it to supply 15 million tons per year of high quality sinter feed at significantly lower cost for the first eight to ten years. The company expects to incur total capital expenditure of about $1.7 billion for the revised Phase II project.
ArcelorMittal is a Zacks Rank #5 (Strong Sell) stock.
Other companies in the steel and related industries with favorable Zacks Rank are NN Inc. (NNBR - Snapshot Report), ThyssenKrupp AG (TYEKF - Snapshot Report), and Timken Co. (TKR - Snapshot Report). While NN retains a Zacks Rank #1 (Strong Buy), ThyssenKrupp and Timken carry a Zacks Rank # 2 (Buy).