JOHANNESBURG - A group of steel processors and labour unions are reportedly eyeing a deal to take control of ArcelorMittal South Africa.
The group has made a proposal to the state owned Industrial Development Corporation which will reportedly provide finance for the takeover. It may also increase its stake from about 8 percent.
The IDC is the second biggest shareholder in ArcelorMittal locally and it has been locked in talks with the steel-maker to make it government owned and save jobs and industrial capacity.
ALSO READ | Liquidation looms for Tongaat Hulett
ArcelorMittal has complained about electricity costs and other barriers it has claimed reduce its ability to compete against imported steel.
It has closed two steel mills and an iron ore mine but still has some idle or open operations.
ArcelorMittal emerged from South Africa’s apartheid-era state-owned company Iscor but later merged with the Mittal steel company to form a global giant.