The transaction is expected to be completed by the end of 2026

The Industrial Development Corporation of South Africa (IDC), a state-owned entity, has reached a preliminary agreement to acquire the South African unit of steel giant ArcelorMittal. The deal is valued at about 10 billion rand ($610 million), Bloomberg reports.

The IDC offer provides for a payment of about 3 billion rand in cash, as well as the assumption of ArcelorMittal South Africa Ltd. (AMSA) debt of about 7 billion rand.

The deal will be one of the largest state interventions in South Africa’s industrial sector in recent years and will effectively place a key strategic asset under the control of a state financial institution. The transaction, which will also require shareholder approval, is expected to be completed by the end of the year.

The takeover of the country’s largest steel producer will conclude negotiations that began in November 2023. At that time, AMSA announced plans to close two plants producing steel grades critical to the country’s automotive and mining industries. The threat of the plants shutting down prompted the IDC and South Africa’s Department of Trade, Industry and Competition to intervene in order to preserve a strategically important industry.

The IDC confirmed that it remains committed to finding “a sustainable solution to address the challenges faced by the producer in order to protect South Africa’s vital steelmaking capacity”.

At the same time, the 10-year agreement with local partner Likamva Resources, which holds a stake in AMSA under the government’s Black Economic Empowerment (BEE) programme, expires in December. The company is not expected to be part of the new ownership structure.

The South African government started negotiations with AMSA back in the summer of 2025. The IDC discussed the possible closure of the Newcastle plant, which produces steel for the country’s automotive, mining and construction industries.