voestalpine Texas: sale of majority stake to ArcelorMittal
voestalpine has been exploring strategic options for its direct reduction plant in Texas, USA, for the past year, and is now selling 80 percent of its shares ArcelorMittal. The enterprise value for 100% of the shares in voestalpine Texas is approximately EUR 900 million (USD one billion). Taking into account the expected debt development of voestalpine Texas as of today, the transaction will lead to a cash inflow in the amount of the equity value for 80% of the shares in voestalpine Texas of approximately EUR 610 million (approximately USD 680 million) at closing and thus to a significant reduction of the net financial debt of the voestalpine Group. This partnership also secures a long-term agreement for the Group to annually supply 420,000 tons of the hot briquetted iron (HBI) produced at the plant. This provides the basis for further decarbonization of steel production at Linz and Donawitz (greentec steel). In addition, the partnership reduces the high spot market risk for the quantities not required. The HBI plant has an annual production capacity of around two million tons.