Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 

MarketScreener Homepage  >  Equities  >  Euronext Amsterdam  >  ArcelorMittal    MT   LU1598757687


News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

ArcelorMittal : China's Jingye Group agrees outline deal to rescue British Steel

share with twitter share with LinkedIn share with facebook
share via e-mail
11/11/2019 | 10:55am EDT
FILE PHOTO: A British Steel works sign is seen in Scunthorpe

China's Jingye Group said on Monday it has reached a provisional deal to buy British Steel and promised to invest 1.2 billion pounds ($1.5 billion) over the next decade and save thousands of jobs.

An agreement is of major political significance as Britain prepares to elect a new government on Dec. 12. The lack of opportunities in northern England, where British Steel is based, is an election issue, as the social gap between north and south widens.

The deal has yet to be finalised, but Business Minister Andrea Leadsom said in a video clip she was optimistic it would be.

Jingye Group Chairman Li Ganpo said the ambition was to create a world-class group.

"We believe that this combination will create a powerful, profitable and sustainable business that will ensure the long-term future of thousands of jobs while producing the innovative high-quality steel products that the world needs," he said in a statement.

The value of the deal was not disclosed. Earlier a BBC report saying a deal was imminent gave a figure of 70 million pounds ($90 million), while sources close to the talks said the price was likely closer to 50 million pounds.

Uncertainty over the future of British Steel has hung over its workforce for much of the year. It was put into compulsory liquidation in May after Greybull Capital, which bought it for one pound from Tata Steel in 2016, failed to secure funding to continue its operations.

Its closure would impact 5,000 jobs in Scunthorpe and a further 20,000 jobs in the supply chain.

British Steel, which makes high-margin, long steel products used in construction and rail, would give Jingye access to Europe's large infrastructure market.

But it could face challenges as the European steel industry grapples with weak demand, high costs for energy and labour and exacting environmental standards.

British Steel did not respond to requests for comment.

A previous deal, announced in August, with Turkey's military pension fund OYAK fell apart and on Monday the fund said the purchase was not commercially viable.

British commodities tycoon Sanjeev Gupta's Liberty Steel Group has also expressed interest in buying British Steel.


Henri Murison, director of the Northern Powerhouse Partnership, set up to boost the economy in the north of England, said a rescue, if finalised, would be "very welcome news".

He said it was time to embrace cooperation with China, which is extending its international reach through its Belt and Road global development strategy. Chinese companies also own a steel plant in Serbia and its sole copper mine.

Leading trade union Unite welcomed the prospect of Chinese ownership, but cautioned there had been "a series of false dawns" for the company.

Jingye, which also operates hotels and real estate, employs 23,500 and has registered capital of 39 billion yuan ($5.58 billion), giving it the financial clout to invest.

Under the terms of the agreement, Jingye would acquire certain assets of British Steel from the Official Receiver, subject to regulatory approvals.

The assets include the steelworks at Scunthorpe and Teesside in northern England, as well as its European units FN Steel in the Netherlands and British Steel France.

Chinese ownership may be contentious, especially in the steel industry. The European Union (EU), which does not include Serbia, has agreed safeguards to protect its own steel industry from competition from cheap imports from China and elsewhere.

Britain has said it will leave the EU but has yet to agree a deal on its departure from the political and economic bloc.

John Cullen,  business recovery partner  at accountancy firm Menzies LLP, said selling the whole British Steel business "in the current trading climate would be no mean feat".

(Reporting by Min Zhang in Beijing, Barbara Lewis and Kate Holton in London, Ceyda Caglayan; editing by Guy Faulconbridge, Josephine Mason and Emelia Sithole-Matarise)

By Min Zhang and Barbara Lewis

Stocks treated in this article : Tata Steel Ltd, ArcelorMittal
Stocks mentioned in the article
ChangeLast1st jan.
ARCELORMITTAL 10.14% 8.644 Delayed Quote.-49.83%
TATA STEEL LIMITED -4.73% 253.85 End-of-day quote.-4.73%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on ARCELORMITTAL
12:28pARCELORMITTAL : has joined forces with leading researchers and medical professio..
10:35aARCELORMITTAL : Kepler Chevreux sticks Neutral
04/01Coronavirus batters steel sector, Europe hardest hit
03/31ARCELORMITTAL : Reduces Production, Starts Cost-Saving Amid Coronavirus Pandemic
03/31ARCELORMITTAL : Further to the statement issued on 19 March, ArcelorMittal today..
03/31Update regarding the impact of COVID-19
03/30ARCELORMITTAL : Gets a Buy rating from Deutsche Bank
03/25ARCELORMITTAL : Receives a Buy rating from Morgan Stanley
03/25Thyssenkrupp to cut 3,000 jobs at struggling steel unit
03/23ARCELORMITTAL : to Idle Blast Furnaces in Indiana, Canada
More news
Financials (USD)
Sales 2019 71 314 M
EBIT 2019 1 528 M
Net income 2019 -783 M
Debt 2019 10 205 M
Yield 2019 2,59%
P/E ratio 2019 -11,0x
P/E ratio 2020 77,5x
EV / Sales2019 0,26x
EV / Sales2020 0,26x
Capitalization 8 588 M
Duration : Period :
ArcelorMittal Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends ARCELORMITTAL
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus OUTPERFORM
Number of Analysts 19
Average target price 15,93  $
Last Close Price 8,49  $
Spread / Highest target 172%
Spread / Average Target 87,8%
Spread / Lowest Target -56,5%
EPS Revisions
Lakshmi Niwas Mittal Chairman & Chief Executive Officer
Aditya Mittal President & Chief Financial Officer
Brian Edward Aranha CTO, Executive VP, Head-Research & Development
Michel Wurth Non-Independent Non-Executive Director
Vanisha Mittal Bhatia Non-Independent Non-Executive Director
Sector and Competitors
1st jan.Capitalization (M$)
NUCOR-36.66%10 847
POSCO1.62%10 610
STEEL DYNAMICS, INC.-38.37%4 794