ArcelorMittal could sell 40% stake in Acciaierie d’Italia, and potentially increase buybacks programme and reduce leverage


Morgan Stanley | Alain Gabriel highlights the news published by La Republicca that ArcelorMittal would be looking to sell its 40% stake in Acciaierie d’Italia (ADI), which has been underperforming (<4mta vs ~10mta). ADI’s earnings are not reported under Arcelor’s EBITDA, but under those of the Associates and JVs. Alain Gabriel estimates that EBIDA attributable to ADI was US$170mn in 2022. The article reported that Arcelor wanted to sell its stake in ADI for US$0.44bn, which would be welcomed in the market as it could increase Arcelor’s buyback programme and reduce its leverage, in terms of valuation, the sale would be above the market appraisal of ADI.

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