ArcelorMittal South Africa and IDC resume negotiations on assets in South Africa

At the end of 2025, the parties failed to reach an agreement

ArcelorMittal South Africa (AMSA) and the Industrial Development Corporation (IDC) have resumed talks on the potential acquisition of the company’s South African operations after failing to attract other bidders, Bloomberg reports.

According to a statement by AMSA posted on the stock exchange, the parties are engaged in in-depth discussions to find a sustainable solution based on a non-binding list of conditions for a potential deal.

At the end of last year, negotiations between the parties collapsed without an agreement after ArcelorMittal rejected an informal offer of around 8.5 billion rand ($523 million), which would have included the repayment of 7 billion rand in debt to the parent company of the South African division.

According to a source familiar with the situation, the takeover by IDC is likely to be gradual, with a series of payments to retain ArcelorMittal’s expertise for some time. AMSA declined to comment beyond the public statement.

Insiders say discussions between South African government officials and ArcelorMittal are continuing in Davos, on the sidelines of the World Economic Forum.

Negotiations between ArcelorMittal, IDC and the South African Department of Trade and Industry began in November 2023. At that time, AMSA announced its intention to close two steel mills that produce steel grades that are critical to the country’s automotive and mining sectors. In 2025, IDC, which owns about 8% of ArcelorMittal South Africa, provided a loan to the latter.

AMSA has now closed two steel mills and a mine in the country. The company still operates a plant in Vanderbijlpark, which produces steel sheets and other products, and has a number of idle facilities.

Last autumn, the South African Federation of Trade Unions (SAFTU) stated that the South African government should “renationalise” ArcelorMittal South Africa to prevent job losses and revive the country’s struggling industry.