SMM6, March 23 / PRNewswire-Asianet /-ArcelorMittal (ArcelorMittal), the world's largest steelmaker, is evaluating potential sales opportunities for infrastructure assets in Canada's largest and most profitable iron ore business as it seeks to reduce debt by spinning off non-core businesses.
The sale of the entire ArcelorMittal infrastructure (AMIC) unit or part of it will help the Luxembourg-based company achieve its goal of reducing net debt from the current $9.5 billion to $7 billion.
In 2013, ArcelorMittal sold a 15 per cent stake in its Canadian mining business to a consortium led by South Korea's Posco for $1.1 billion.
ArcelorMittal (ArcelorMittal) said last year that it had the potential to "release" $2 billion from its portfolio by 2021, which analysts saw as a sign of plans to sell non-core businesses. Last month, it raised the same amount by selling stocks and convertible bonds.
European steelmakers have been hit by falling demand from the car industry and competition from cheap imports. It also makes it difficult for them to pass on higher iron ore prices to customers, a key ingredient in steelmaking, after mine closures in Brazil and strong demand from China pushed up iron ore prices, raising smelting costs on their own.
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