Amsa, IDC reopen deal talks with non-binding offer for mills

ArcelorMittal SA (Amsa) and South Africa’s biggest development-finance institution have resumed talks over the potential acquisition of the Luxembourg-based steel giant’s operations in the African country, after failing to lure other suitors.

The Industrial Development Corporation (IDC) will submit a non-binding offer for the business, said the people, who asked to not to be identified because the information is still private.

Read: Can South Africa survive without Amsa? [Jan 2026]

Late last year, talks between the parties fell apart without a deal after ArcelorMittal didn’t accept an informal proposal of about R8.5 billion ($523 million), which would have included the repayment of R7 billion in debt to the South African unit’s parent.

ArcelorMittal SA share price over the last five years

Talks between ArcelorMittal, the IDC and South Africa’s Department of Trade, Industry and Competition (dtic) started in November 2023 when Amsa announced that it planned to shut two steel mills that produce grades that are crucial to the country’s key automotive and mining industries.

Those discussions became exclusive last year when the IDC, which holds about 8% of Amsa, granted the steelmaker a loan to stave off the closure.

Amsa has now closed the two steel mills and an iron-ore mine.

It still operates a mill in Vanderbijlpark, south of Johannesburg, which produces steel sheets and other products – and has idled facilities in the capital, Pretoria, and in the west coast town of Saldanha.

The IDC sees its mills as crucial to the nation’s industrial sector.

Read/listen:
ArcelorMittal M&A head holds talks in South Africa over unit sale
ArcelorMittal, IDC end exclusive talks with no deal
Interim smelter plan to cost government R5.2bn

Amsa declined to comment.

An IDC spokesperson said it continues to engage Amsa, the ArcelorMittal Group and other stakeholders, including the dtic, to find a sustainable solution to challenges facing the company.

Amsa, formerly known as Iscor, was acquired by Indian billionaire Lakshmi Mittal in 2003.

Mittal in 2006 combined with Arcelor to form ArcelorMittal.

© 2026 Bloomberg

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