ArcelorMittal SA (AMSA) has cut its losses to R2.6 billion and is in takeover talks with the state-run Industrial Development Corporation (IDC).
IDC plans to submit a non-binding proposal for this project. The parties were already in talks for 2025, but an informal offer of R8.5 billion, including R7 billion of debt to AMSA’s parent company, was rejected.
ArcelorMittal Group is based in Luxembourg and owns about two-thirds of the company.
Discussions between IDC and the Department of International Trade and Industry began in November 2023, when AMSA announced it would close its long steel operations, which are critical to the automotive and mining industries.
The closure process began last year, even though IFC offered a loan to prevent closure.
AMSA still operates a factory in Vanderbijlpark and has idle facilities in Pretoria and Saldanha. IDC reportedly considers the factory essential to the country’s industrial sector, according to Bloomberg.
AMSA was previously a state-owned company and was previously known as Iscor. The company was privatized and listed in 1989. It was then acquired by billionaire Lakshmi Mittal in 2003. Later, Mittal merged with Arcelor to form ArcelorMittal.
AMSA said in its latest financial statements that progress in discussions with IDC will result in a shared outlook for the company beyond 2026.
“Depending on the outcome of these discussions, ArcelorMittal South Africa will implement a strategy to improve the profitability of its core business and the resilience of its balance sheet,” AMSA said.
losses are reduced
AMSA said in its 2025 financial report that the Longs business will be formally reduced to care and maintenance by the end of 2025.
The impact on EBITDA was offset in 2025 compared to a loss of R1,668 million in the prior period.
“Currently, there is no production activity taking place at the Newcastle facility. The primary purpose of this site is the conversion into an industrial park and the monetization of selected assets and inventory to contribute positively to earnings from 2026 onwards,” AMSA said.
“Partnership and distribution opportunities will be evaluated based on commercial feasibility.”
Revenue decreased by 16% to R32 billion. This was primarily due to a 12% decline in gross sales volume and a 5% decline in net realized steel selling prices.
Revenues for the second half of the year were R15,173 million, down 11% compared to the previous six months (H1 2025: R17,118 million).
However, the EBITDA loss decreased from R2,947 million in 2024 to R1,098 million. The EBITDA loss for the second half of 2025 was R988 million, compared to a loss of R110 million in the first half.
Attributable losses in the same year amounted to R2.9 billion (loss of 260 cents per share) and losses in 2024 amounted to R5,839 million (loss of 524 cents per share).
AMSA also posted an overall loss of R3,355 million (loss of 301 cents per share) compared to a loss of R5,102 million (loss of 458 cents per share) in the prior-year period.
Article has been corrected to reference Bloomberg reporting
