(Boursier.com) — ArcelorMittal fell 4.8% to 20 euros following the terrible fire which struck its Kostenco coal mine in Kazakhstan. At least 45 workers were killed in this disaster, one of the largest in the country’s mining history. Following this tragedy, the steel group confirmed discussions for the nationalization of its subsidiary in Kazakhstan and signed a preliminary agreement for a transaction which will transfer ownership to the Republic of Kazakhstan. ArcelorMittal is committed to finalizing this transaction as quickly as possible while ArcelorMittal Temirtau, the group’s local subsidiary, specified that negotiations had been going on for several months.
As Oddo BHF explains, the impact of the sale on the group’s results should be limited. The transaction could nevertheless also be accompanied by financial impacts such as the provision of a cash balance or the assumption of certain liabilities, particularly environmental ones, but due to the lack of communication from the group at this stage, it is difficult to assess them. . At this stage, the analyst assumes an approximate cost of 500 ME. Beyond that, the current situation is seriously damaging the group’s reputation. Even if the security failures revealed seem confined to Kazakhstan, they do not help it in its projects. We are thinking in particular of the possible takeover of US Steel for which the group would be a candidate according to the press… The analyst remains to ‘outperform’ on the stock but reduces his target from 30 to 28 euros.
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