ArcelorMittal has been granted merger clearance by the European Commission (EC) for AM Investco Italy’s proposed acquisition of Italian steel maker Ilva, Kallanish learns from the Luxembourg-headquartered steelmaker.

EC merger clearance follows the conclusion of the Commission’s Phase II investigation into the proposed acquisition of Ilva. It has been granted on the basis that ArcelorMittal has committed to dispose of assets in Italy, Romania, Macedonia, Czech Republic, Luxembourg and Belgium to ease competition concerns for HRC, HDG and CRC markets.

“Approval by the EC is a significant milestone in the transaction to acquire Ilva and represents a major step towards closing the deal, which is now expected to occur as soon as possible”, the company says in a note.

As reported, ArcelorMittal submitted a package to the EC in April proposing the divestment of various European assets (see Kallanish 16 April). The proposed divestment package includes ArcelorMittal Piombino, the company’s only galvanised steel plant in Italy, ArcelorMittal Galati, Romania, ArcelorMittal Skopje, Macedonia, ArcelorMittal Ostrava, Czech Republic, and ArcelorMittal Dudelange, Luxembourg.

In addition to the above sales, ArcelorMittal also agreed to remove Marcegaglia, the Italian re-roller, from the consortium purchasing Ilva. "This avoids [… the situation] that competition could be weakened further by a strengthening of structural ties between the three companies ArcelorMittal, Marcegaglia and Ilva," the EC says in the document.

ArcelorMittal also has a provisional agreement with Italy’s Arvedi for the latter to buy its La Magona assets in Piombino, while the other mills do not have a confirmed potential buyer yet. It is expected however that a number of international players could be interested in some of the key assets. These include the HDG lines in Belgium and Luxembourg as well as the integrated plants in Romania and Czech Republic.

The Italian Minister of Industrial Development, Carlo Calenda, welcomed the approval by the EC. Italy is set to have a new government soon however and the definitive closing of the deal could well be discussed with a new minister in charge.