ArcelorMittal sells 50% stake in its shipping business

Picture: REUTERS
Picture: REUTERS

ArcelorMittal, the world’s largest steelmaker, has agreed to sell a 50% stake in its shipping business, the first step in its plan to offload $2bn (R28.4bn) worth of assets by the middle of 2021 to reduce its debt.

The company, which had net debt of $10.7bn (R152.9bn) at the end of September, said on Monday that the sale of the stake in Global Chartering (GCL) to DryLog would cut its debt by $530m (R7.5bn). It has a target to pull it below $7bn (R99.5bn).

ArcelorMittal said it expected  to close the deal before the end of 2019.

GCL operates 28 dry cargo vessels, 25 of which are on long-term leases, with three owned outright, and will continue to handle a share of ArcelorMittal’s shipments. — Reuters