ArcelorMittal Site in Algeria Headed Toward Nationalization
The North Africa Journal | Steel giant ArcelorMittal may be given a lifeline and a gift of sort by the Algerian government. The company is reported to be wanting the Algerian government to acquire an additional 21% stake in its Annaba unit, northeast Algeria for $200 million.
While such transaction would make Algeria a majority shareholder since Algeria already owns 30%, the Algerian authorities are said to be wanting to add another $200 million to make fresh investments to double the site’s capacity to two million tons per year.
Algeria’s current 30% ownership is through state-owned Sider and talks are underway as rumors have been circulating about ArcelorMittal seeking to disengage from Algeria. The company has also issued a press release to deny rumors that it has filed for bankruptcy.