ArcelorMittal South Africa (AMSA) and South Africa’s biggest development-finance institution have resumed talks over the potential acquisition of the Luxembourg-based steel giant’s operations in this country, after failing to lure other buyers.

This comes on top of cautionary announcements released on the Johannesburg Stock Exchange on December 17. (This is a formal alert by any JSE-listed company to shareholders that price-sensitive information is pending. Investors should exercise caution.)

Investor price surges

On Thursday, January 22, AMSA shares surged as much as 11% since November.

Talks between AMSA and key stakeholders collapsed late last year after the steel producer rejected an informal proposal of about R8.5 billion, which included the repayment of R7 billion in debt to its parent company.

Negotiations between AMSA, the Independent Development Corporation (IDC) and the Department of Trade, Industry & Competition began in November 2023, with the announcement that plans were underway to shut down two steel mills producing grades vital to the country’s automotive and mining sectors. The IDC, which holds about an 8% stake in AMSA, extended a loan to the company in an attempt to prevent the closures.

Despite this intervention, AMSA closed both the Newcastle and the Vereeniging long steel production plants, with both facilities placed under care and maintenance by November 2025.

The IDC has previously stated that AMSA’s mills are critical to South Africa’s industrial base.

An IDC spokesperson stated that the corporation continues to engage with AMSA and other stakeholders, including the Department of Trade, Industry & Competition, to find a sustainable solution to the challenges facing the company.

AMSA yet to comment

AMSA is yet to comment. However, Tami Didiza (Manager: Corporate Communications) released the following statement on January 22:

“Shareholders are referred to the various cautionary announcements released on the Stock Exchange News Service of the JSE Limited, the most recent of which was released on 17 December 2025. Shareholders should note that: (i) ArcelorMittal South Africa, ArcelorMittal Group, and the Industrial Development Corporation SOC Limited are engaged in advanced discussions to find a sustainable solution based on a non-binding term sheet regarding a potential transaction;(ii) these discussions remain subject to definitive agreements and multiple approvals; (iii) and there is no certainty that any transaction will be concluded. Further announcements will be made in relation to these matters as and when appropriate. Accordingly, shareholders are advised to continue to exercise caution when dealing in the company’s securities until a further announcement is made. The board of directors of ArcelorMittal South Africa collectively and individually accepts responsibility for the information contained in this further cautionary announcement insofar as it relates to the company.”

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