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ArcelorMittal (MT) Completes Sale of Temirtau Operations to QIC

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ArcelorMittal (MT - Free Report) successfully concluded the sale of its Kazakh steel and mining operation, ArcelorMittal Temirtau, to the Qazaqstan Investment Corporation (QIC), a state-controlled direct investment fund. Following extensive discussions between ArcelorMittal and the government of Kazakhstan, a sustainable agreement for the integrated steelmaking asset in the Karaganda region was reached.

The transaction, valued at $286 million, includes an additional $250 million for repaying outstanding intra-group dues. ArcelorMittal is also set to receive a sovereign-fund guaranteed payment of $450 million, disbursed in four equal annual installments, as a repayment of an intra-group loan.

As part of the deal, all assets of ArcelorMittal Temirtau, outlined in the company’s consolidated accounts and third-quarter 2023 earnings release, have been transferred to QIC on an 'as is' operational basis. This signifies that QIC has assumed control and responsibility for the operations and the entity will be rebranded accordingly.

ArcelorMittal has contributed approximately $35 million to the Kazakhstan Khalkyna Foundation, which focuses on healthcare and education projects in the Karaganda region. This move reflects ArcelorMittal's commitment to supporting local communities and investing in vital sectors for the region’s betterment.

Shares of ArcelorMittal have lost 6.7% in the past year compared with a 16.2% rise of the industry.

Zacks Investment Research
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ArcelorMittal anticipates 1-2% year-over-year growth in global steel consumption (excluding China) for 2023. The company maintains a positive outlook on steel demand in the medium to long term. Capital expenditures for 2023 are projected in the range of $4.5-$5 billion. Additionally, strategic projects are expected to contribute to an additional $1.3 billion in normalized EBITDA.

ArcelorMittal Price and Consensus

 

ArcelorMittal Price and Consensus

ArcelorMittal price-consensus-chart | ArcelorMittal Quote

 

Zacks Rank & Key Picks

ArcelorMittal currently carries a Zacks Rank #3 (Hold).

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