The world's largest steel company Arcelormittal, in the consortium with Italian company Marcegaglia, will acquire Italy's largest steel company Ilva from the Italian government for €1.8 billion, Le Figaro reports, citing the Economy Ministry of Italy.
Arcelormittal intends to invest €2.4 billion in the Italian company. By 2018, Ilva will produce 6 million tons of steel annually, against 5.8 million tons it manufactured in 2016. The plant's products will be used in automobile manufacturing, building and energy sectors.
Ilva was nationalized in 2015. The staff of the factory located in the South of Italy amounts to 11,000 people.
In the first quarter of 2017, Arcelormittal reported sales growth of 20%, up to $16.1 billion. Over the same period, the company reported a net profit attributable to shareholders of $1 billion against a loss of $416 million a year earlier.