ArcelorMittal, South Africa Takeover Talks Stall Over Valuation

The talks between ArcelorMittal, the world's largest steelmaker, and South Africa's state-owned Industrial Development Corp. (IDC) regarding the sale of ArcelorMittal's local unit have stalled due to disagreements over the valuation of the entity. The people familiar with the matter revealed that the two parties are unable to reach a consensus on the appropriate valuation for the ArcelorMittal unit in South Africa. This impasse has led to a delay in the potential transaction. ArcelorMittal's South African unit has been facing challenges in recent years, including declining domestic demand for steel and increased competition from imports. The sale to the IDC was seen as a way to address these issues and ensure the long-term sustainability of the local steel industry. However, the inability to agree on the valuation has temporarily halted the progress of the negotiations, leaving the future of the ArcelorMittal unit in South Africa uncertain.