ArcelorMittal sells vehicle stake

File picture: Stephane Mahe, Reuters

File picture: Stephane Mahe, Reuters

Published Feb 5, 2016

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Cape Town - ArcelorMittal said on Friday it had sold its 35 percent stake in the vehicle component manufacturer Gestamp Automocion to the majority shareholder, the Riberas family, for a total cash consideration of €875 million.

The international steelmaker will also receive €10m as a dividend for 2015.

ArcelorMittal entered into a joint venture with the Riberas family in 1998 to develop the business of stamping, assembly and welded blanks for automotive original equipment manufacturers.

Gestamp has since established itself as a global market leader in the design and manufacture of metal components and assemblies, with a leadership position in hot-stamped technology.

Madrid-based Gestamp now operates 95 plants in 20 countries and supplies all the major car manufacturers in Europe, the Americas and Asia.

Aditya Mittal, chief executive of ArcelorMittal Europe and group chief financial officer, said: “The sale of our stake in Gestamp unlocks substantial value for ArcelorMittal's shareholders and is consistent with our stated strategy of portfolio optimisation.”

AFRICAN NEWS AGENCY

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