ArcelorMittal is preparing an auction of its downstream construction unit, which makes roof paneling and other products, as part of a plan to divest peripheral operations, Bloomberg News reported Sept. 10, citing people familiar with the matter.
The sale may bring in about €700 million to €800 million for the company, according to the sources, and is expected to initiate in the fourth quarter.
The construction business sale will receive interest from building materials producers as well as private equity firms, according to one of the people.
ArcelorMittal swung to an attributable net loss in the second quarter of US$447 million, or 44 U.S. cents per share, from a year-ago net income of US$1.87 billion, or US$1.83 per share.
The company said in August that it has identified opportunities to unlock up to US$2 billion of value from its asset portfolio over the next two years.
