Dallas, Texas 05/02/2014 (FINANCIALSTRENDS) – 78% of the European logistics arm to be sold
H.E.S. Beheer N.V. (AMS:HES) has acquired a 78% stake in ATIC Services SA. This is the division which handles ports and logistics in Europe for ArcelorMittal SA (ADR) (NYSE:MT).
HES previously held a 22% stake in the company. Once the sale is completed by June 2014, it will become a 100% stakeholder. However, the financial details of the transaction have not been disclosed till date.
The details of the sale were revealed on Investor day held in the month of March by MT. The company projected an increase of nearly 4% in its share in the worldwide steel market. It also reiterated the main drivers and enablers like portfolio management, retaining and hiring the best talent, a de-centralized method of functioning as well as a strong balance sheet. MT also expected its earnings to be in the range of $150 per ton.
More streamlining to be undertaken.
The company has announced that it will further streamline both the steel based divisions and its management. This will be done based on geographical regions. All external reporting for MT will be as per the following structure- NAFTA, Mining, Brazil, ACIS and Europe.
The company also shared that it was revising the second phase of its Liberian operations. This will lead to close to 15 million tons of high quality raw material being sourced at much lower cost for the next decade. The capital expenditure is supposed to be $1.7 billion for this phase.
In the ongoing re-organization, the mining segment will not be impacted. It also announced that it was publishing the consensus figures of 1Q, 2014. These figures are based on the figures published by a company not affiliated in any way with MT. The data for the consensus numbers as well as the forecasts of the analysts will be published together.