Global steel giant Arcelormittal remains in contention for assets of Liberty Steel France
Global steel giant ArcelorMittal remains in contention for the main French activities of Liberty Steel, said struggling Liberty parent company GFG Alliance, despite announcing a tentative deal with Germany’s Saarstahl. The French Treasury announced Thursday that an agreement in principle had been signed between Liberty and Saarstahl for the purchase of the French steelworks of Ascoval and the Hayange railway plant.
“The Liberty Steel group has presented (…) a number of options to ensure the future of Liberty Steel France (LSF), which includes Liberty Ascoval and Liberty Rail Hayange,” a carrier told AFP. word from GFG via email Thursday night.
“Although we want to keep LSF within the group, we have also identified two credible buyers, ArcelorMittal and Saarstahl, who will be able to capitalize on our ambitions for the company.
Liberty Steel is undergoing a drastic restructuring to dispose of assets following the collapse of controversial GFG financier Greensill earlier this year.
“LSF’s key stakeholders will now decide how best to ensure that factory employees, customers and other stakeholders can have confidence in the sustainable future of companies,” said the GFG spokesperson.
He added: “Both companies have faced a significant reduction in working capital since the collapse of Greensill Capital and we have been working hard over the past few months to secure new funding and explore put options for them. . “
GFG Alliance, owned by Indo-British billionaire Sanjeev Gupta, was Greensill’s biggest customer when the financial giant collapsed in March.
Greensill Capital, which bypassed the strict regulations imposed on traditional banks, specialized in short-term business lending through a complex and opaque business model that ultimately sparked its implosion.
The case also shed light on Gupta’s criticized business practices, with the UK government calling GFG’s structure “very opaque” after refusing to save it.