ArcelorMittal South Africa (AMSA) and the country’s largest development‑finance institution, the Industrial Development Corporation (IDC), have revived negotiations over a potential takeover of the steelmaker’s local operations. The renewed talks come after earlier efforts to attract alternative buyers failed to produce any viable offers.
According to people familiar with the discussions, who requested anonymity as the matter remains confidential, the IDC is preparing to submit a non-binding offer for ArcelorMittal’s South African assets. News of the revived negotiations immediately lifted market sentiment. AMSA shares rose as much as 11%, reaching their highest level since November on the Johannesburg Stock Exchange.
The current round of engagement follows a breakdown in talks late last year. At the time, ArcelorMittal rejected an informal proposal estimated at approximately R8.5 billion, which would have included repayment of R7 billion in debt owed by AMSA to its parent company. With no agreement reached, negotiations temporarily dissolved.
The origins of the discussions date back to November 2023, when AMSA announced plans to shut two of its steel mills that produce critical grades used in South Africa’s automotive and mining industries. The potential closures alarmed the government and industrial stakeholders due to the strategic importance of domestic steel supply. As a result, ArcelorMittal, the IDC, and the Department of Trade, Industry and Competition (DTIC) initiated exploratory talks to find a way forward.
The situation intensified in 2024 when the IDC, already an 8% shareholder in AMSA, provided the company with a loan to prevent immediate shutdowns. This financial support gave the IDC temporary exclusivity in negotiations as it sought to stabilize operations.
Despite these interventions, AMSA ultimately proceeded to close the two mills and an iron‑ore mine, citing unsustainable losses. The company now operates only its Vanderbijlpark mill, situated south of Johannesburg, which continues to produce steel sheet and related products. Facilities in Pretoria and Saldanha remain idled indefinitely.
For the IDC, these assets remain central to South Africa’s industrial capabilities. The corporation believes that maintaining domestic steelmaking capacity is essential for the country’s manufacturing, construction, automotive, and mining sectors. AMSA declined to comment on the ongoing developments.
A spokesperson for the IDC confirmed that the institution continues to engage with AMSA, its parent ArcelorMittal Group, and government stakeholders to secure a sustainable, long-term solution for the troubled steelmaker and the broader steel value chain.
AMSA’s history stretches back decades. Originally known as Iscor, the company was acquired in 2003 by Indian billionaire Lakshmi Mittal. The global steel empire expanded further when Mittal Steel merged with Arcelor in 2006, forming the present-day ArcelorMittal, the world’s largest steel producer.
