MT - ArcelorMittal to acquire CSP in Brazil for ~$2.2B

• ArcelorMittal ( NYSE: MT ) has signed an agreement with the shareholders of Companhia Siderúrgica do Pecém to acquire CSP for an enterprise value of approximately $2.2B.
• Transaction is expected to close by late 2022, subject to approvals.
• CSP is producing high-quality slab at a globally competitive cost. It operates a three million tonne capacity blast furnace and has access via conveyors to the Port of Pecém, a large scale, deep water port located 10 kilometers from the plant.
• CSP operates within Brazil’s first Export Processing Zone, and benefits from various tax incentives including a low corporate income tax rate.
• The acquisition will expand the company’s position in the high-growth Brazilian steel industry and add 3 million tonnes of high-quality and cost-competitive slab capacity, with the potential to supply slab intra-group or to sell into North and South America.
• “CSP produces high-quality slabs and is cost competitive, ensuring its products are competitive domestically and for export. In the short-term we will continue to supply CSP’s existing customer base in North and South America. However, what makes this acquisition so exciting is the medium to long-term potential and options it presents. As we continue to develop the downstream capabilities of our NAFTA and Brazilian businesses over the medium-term, we have the option for CSP to become an important intra-group slab supplier. Over the longer-term there is also the option to significantly increase its slab capacity and add rolling and finishing capabilities on a low-carbon emissions basis.”
• Shares up 3% PM, after the company announced mixed Q2 results  and a new buyback program of 60M shares.

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