ArcelorMittal has entered into a sale and purchase agreement to divest its operations in Bosnia and Herzegovina to Pavgord Group.
The divesture will include the integrated steel plant, ArcelorMittal Zenica, and the iron ore mining business ArcelorMittal Prijedor, which supplies the Zenica plant.
Despite substantial investments to maintain the Bosnian entities within the group, ArcelorMittal concluded that selling them would be the most beneficial move for their continued development and the welfare of the workforce.
The employees of both ArcelorMittal Zenica and ArcelorMittal Prijedor will retain their positions under the new ownership.
The financial impact of the transaction will result in ArcelorMittal recording a non-cash loss on disposal of approximately $200m (€173.95m). This figure includes foreign exchange losses that have been accumulating in equity since the initial acquisition of the businesses.
The completion of the sale is anticipated in the third quarter of 2025, contingent upon obtaining merger control clearance and satisfying all conditions precedent.
Operations will continue without interruption until the deal is finalised, supported by the local and company leadership teams.
ArcelorMittal vice-president and ArcelorMittal Europe – Long Products CEO Sanjay Samaddar said: “ArcelorMittal acknowledges the support of the Government of Bosnia and Herzegovina, and the Government of the Federation and Republika Srpska, during the 21 years that the company has been operating in the country.
“We believe the company will continue to be a major contributor to the economy of Bosnia and Herzegovina. We thank all our employees at ArcelorMittal Zenica and ArcelorMittal Prijedor for their hard work and passionate engagement during all these years and wish them all the best for the future, as well as to Pavgord Group in this new phase.”
In a related development, ArcelorMittal South Africa is in talks with the government and other stakeholders over financial support that could delay the planned shutdown of its long steel business.
The closure, initially scheduled for April, threatens 3,500 jobs and could disrupt several industries, following unsuccessful negotiations with the government and challenges such as weak demand and infrastructure problems.
