ArcelorMittal said Dec. 23 that it expects to reduce its net debt by US$530 million with the sale of a 50% stake in its wholly owned shipping business Global Chartering Ltd. to DryLog Ltd.

A 50/50 joint venture will be formed with DryLog following the sale completion, which is expected before the end of 2019. The completion will impact ArcelorMittal's net debt by US$400 million, with a further US$130 million in early 2020.

Global Chartering operates 28 dry cargo vessels, 25 of which are on long-term leases and will be transferred to the joint venture, with the remaining three being owned outright.

The stake sale is part of ArcelorMittal's plan to unlock US$2 billion of value from its asset portfolio by mid-2021.