ArcelorMittal SA has abandoned its planned takeover of a joint venture with struggling car part manufacturer CLN-Coils Lamiere Nastri SpA after the Italian government imposed restrictions. According to reports from Bloomberg, the steel conglomerate had originally agreed to take control of the 51% stake of ArcelorMittal CLN Distribuzione Italia Srl it didn't own as part of a broader debt restructuring agreement reached between CLN and its lenders.
The Italian government used its so-called golden power — aimed at protecting strategically relevant companies — to impose conditions on takeovers. As reported by Bloomberg, these conditions included government approval for reductions in the company structure and workforce, and maintaining existing operations for five years. The intervention represents the latest example of how the Italian government is using golden power rules to support national interests against perceived threats and protect domestic companies and jobs.
ArcelorMittal decided not to proceed with the deal and Acciaieria Arvedi SpA, an Italian steelmaker which had bid for the joint venture earlier in the process, made a new binding proposal. According to people familiar with the matter, as reported by Bloomberg, ArcelorMittal and CLN agreed to the offer in recent weeks, with Arvedi planning to increase production. Representatives for Arvedi, CLN and the industry ministry declined to comment, while an official at ArcelorMittal didn't reply to requests for comment.
The formation of the ArcelorMittal-CLN joint venture in 2015 brought together two of the largest steel distributors for flat carbon steel products. As reported by Bloomberg, ArcelorMittal is also one of the largest creditors of the company, ahead of banks and other suppliers. The joint venture employs about 400 people, with €801 million ($933 million) revenue reported in 2022, according to its website. Caught up in the decline of the auto industry, CLN is separately pushing ahead with an asset disposal plan to allow banks recover part of their original exposure to the business.
