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Liberty buys Romania's largest steelworks of Mittal

Mittal steelworks in Galati, Romania. Photo: ArcelorMittal Group
Mittal steelworks in Galati, Romania. Photo: ArcelorMittal Group
Published by
Markku Björkman - 30 Oct 2018

The British metal producer Liberty, part of the GFG Alliance Group, owned by British-Indian investor Sanjeev Gupta, plans to buy four of the ArcelorMittal Group's European Steelworks, which are for sale and owned by the Indian billionaire Lakshmi Mittal.

The deal also includes Romania's largest steelworks, ArcelorMittal in Galati. However, the parties have not yet reported the financial conditions of the business.

- It is a transaction that would increase Liberty's total production capacity by just over 15 million tonnes per year. Consequently, our group has made a binding offer for the purchase of ArcelorMittal's major integrated steelworks in Galati, Romania and Ostrava in the Czech Republic, together with Skopje's rolling mill in Macedonia and in Italian Piombino, Liberty announced in a press release.

The deal is subject to EU Commission approval and other local processes, including the launch of informal talks with local and European works councils.

The acquisition doubles Liberty's global metal manufacturing capacity, which already covers steel and aluminium factories in the UK. These units deliver vehicles, aviation and special technology. In addition, the Group has steel mills in Australia that deliver steel to the building and infrastructure sector. The group also manufactures steel in the United States for the automotive industry and other sectors.

The GFG Alliance has 14,000 employees worldwide and the acquisition will more than double the number of employees by adding another 12,500 people.