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ArcelorMittal Lands Agreement with Ilva's Trade Unions
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ArcelorMittal (MT - Free Report) has reached a provisional labor agreement with Ilva’s trade unions. The move marks a progress in AM Investco Italy Srl’s planned buyout of Ilva S.p.A.
One of the key terms of the agreement provides a solution for Ilva’s existing workforce. ArcelorMittal also committed to hire 10,700 workers initially on the basis of their contractual terms of employment. Moreover, the company, between 2023 and 2025, will hire any worker under Ilva’s administration. The provisional agreement is due to be voted by Ilva’s employees before formal ratification.
The company expects legal completion of the deal and formal beginning of AM Investco’s lease and purchase agreement for Ilva on Nov 1, 2018. Notably, ArcelorMittal was granted clearance for the planned acquisition of Ilva by the European Commission in May 2018.
Shares of ArcelorMittal have gained 7.7% in the past year, compared with the industry’s growth of roughly 4.1%.
Background of the Deal
In June 2017, ArcelorMittal and its partner Marcegaglia announced that AM Investco has reached a binding agreement with the Italian government regarding the lease and obligation to purchase Ilva. The transaction details of AM Investco’s plans for Ilva include a purchase price of €1.8 billion with annual leasing costs of €180 million, which will be paid in quarterly installments.
ArcelorMittal believes that the acquisition of Ilva will prove to be a good investment without compromising on the strength of its balance sheet. This will provide an opportunity to expand leadership and product offering in Italy, the second-largest steel producing and consuming market in Europe.
Ingevity has an expected long-term earnings growth rate of 12%. Its shares have moved up 62.3% in the past year.
Celanese has an expected long-term earnings growth rate of 10%. Its shares have gained 19.2% in the past year.
Huntsman has an expected long-term earnings growth rate of 8.5%. Its shares have returned 9.8% in a year.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
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ArcelorMittal Lands Agreement with Ilva's Trade Unions
ArcelorMittal (MT - Free Report) has reached a provisional labor agreement with Ilva’s trade unions. The move marks a progress in AM Investco Italy Srl’s planned buyout of Ilva S.p.A.
One of the key terms of the agreement provides a solution for Ilva’s existing workforce. ArcelorMittal also committed to hire 10,700 workers initially on the basis of their contractual terms of employment. Moreover, the company, between 2023 and 2025, will hire any worker under Ilva’s administration. The provisional agreement is due to be voted by Ilva’s employees before formal ratification.
The company expects legal completion of the deal and formal beginning of AM Investco’s lease and purchase agreement for Ilva on Nov 1, 2018. Notably, ArcelorMittal was granted clearance for the planned acquisition of Ilva by the European Commission in May 2018.
Shares of ArcelorMittal have gained 7.7% in the past year, compared with the industry’s growth of roughly 4.1%.
Background of the Deal
In June 2017, ArcelorMittal and its partner Marcegaglia announced that AM Investco has reached a binding agreement with the Italian government regarding the lease and obligation to purchase Ilva. The transaction details of AM Investco’s plans for Ilva include a purchase price of €1.8 billion with annual leasing costs of €180 million, which will be paid in quarterly installments.
ArcelorMittal believes that the acquisition of Ilva will prove to be a good investment without compromising on the strength of its balance sheet. This will provide an opportunity to expand leadership and product offering in Italy, the second-largest steel producing and consuming market in Europe.
ArcelorMittal Price and Consensus
ArcelorMittal Price and Consensus | ArcelorMittal Quote
Zacks Rank & Other Stocks to Consider
ArcelorMittal currently sports a Zacks Rank #1 (Strong Buy).
A few other top-ranked stocks in the basic materials space are Ingevity Corp. (NGVT - Free Report) , Celanese Corp. (CE - Free Report) and Huntsman Corp. (HUN - Free Report) , each sporting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ingevity has an expected long-term earnings growth rate of 12%. Its shares have moved up 62.3% in the past year.
Celanese has an expected long-term earnings growth rate of 10%. Its shares have gained 19.2% in the past year.
Huntsman has an expected long-term earnings growth rate of 8.5%. Its shares have returned 9.8% in a year.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>