ArcelorMittal unlocks value through separation of integrated US assets and repositions its footprint in North America - Seite 2
- Favourable valuation achieved for ArcelorMittal USA due to the high synergistic potential of the combined company. The Transaction valuation for ArcelorMittal USA equates to an enterprise value multiple of approximately 6x through-the-cycle EBITDA4.
- ArcelorMittal will participate in the upside potential of the larger combined company, which is more diversified, fully-integrated and has significant synergy potential.
Significant value creation potential from exposure to a highly synergetic combination
- The combined company is expected to generate an estimated $150 million of annual cost synergies. ArcelorMittal will participate in the future value creation potential through its minority shareholding.
- Key areas of anticipated synergies include optimising the combined footprint, raw material sourcing and supply chain efficiencies, and integrating corporate functions.
Strategic repositioning of ArcelorMittal’s North American platform
- This transaction repositions ArcelorMittal’s platform in North America which will continue to service its clients through its strategic assets in Canada, Mexico and AM/NS Calvert in the US.
- These assets represent a strong footprint in North America with Dofasco and ArcelorMittal Mexico amongst the lowest cost producers in the region. AM/NS Calvert, which is already amongst the world’s most advanced steel finishing facilities, will be augmented by the recently announced intention to construct an EAF to optimise its slab sourcing.
- ArcelorMittal will retain its R&D programme and innovation centres to maintain its product and process development that underpins its leadership position.
Positive financial impact on ArcelorMittal enables opportunity for cash returns to shareholders
- The deconsolidation of the associated liabilities at ArcelorMittal USA, comprising mostly pension and OPEB liabilities, will improve the Group’s risk profile, reduce net debt and strengthen its capital structure and credit metrics.
- ArcelorMittal intends to redistribute $500 million of the cash proceeds to shareholders through a share buyback programme.
- The buyback programme will commence with effect from today and comply with purchase price rules as per the Company’s share buyback mandate. Share buybacks may be undertaken until the earlier of 31 March 2021 or when ArcelorMittal has fully utilised the allocated $500 million.
Commenting, Mr. Lakshmi Mittal, Chairman and CEO, ArcelorMittal, said: