LUXEMBOURG—The world’s largest steel producer, ArcelorMittal, says it hopes to raise $3 billion in fresh capital and sell a minority stake in automotive engineering company Gestamp to reduce its debt, amid a troubled outlook for the global industry.
ArcelorMittal’s 35 per cent stake in Madrid-based Gestamp, which makes metal parts for the global automotive sector, is expected to be worth US$1B. The steel producer said it will continue its supply relationship with Gestamp through a shareholding in Gonvarri, a sister company of Gestamp.
CEO Lakshmi Mittal said the company hopes to reduce net debt to less than $12 billion from the $15.7 billion in debt posted at the end of last year.
“This capital raise, combined with the sale of our minority shareholding in Gestamp, will accelerate the company’s debt reduction plans and enable us to reduce net debt to less than US$12 billion. This will help ensure that the business is resilient in any market environment and puts ArcelorMittal in a position of strength from which to further improve performance,” said the CEO.