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ArcelorMittal announces sale of Bosnian operations

1. ArcelorMittal sells operations in Bosnia to Pavgord Group. 2. Sale includes Zenica steel plant and Prijedor iron ore mine. 3. Expected non-cash loss on disposal is around $0.2 billion. 4. Transaction subject to merger clearance; operations continue as usual. 5. ArcelorMittal acknowledges local government support during its operations.

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FAQ

Why Bearish?

The non-cash loss indicates operational challenges. Historical examples show divestitures can lead to initial market confusion, affecting stock valuation negatively.

How important is it?

The decision to divest impacts operational strategy directly, influencing investor perception.

Why Short Term?

Initial market reaction may focus on the loss and uncertainty. Over time, clarity on strategic direction may alleviate concerns.

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MTNUESTLD
June 20, 2025 09:30 ET  | Source: ArcelorMittal S.A. 20 June 2025, 15:30 CET ArcelorMittal (“the company”) has today signed a sale and purchase agreement to sell its operations in Bosnia and Herzegovina. ArcelorMittal Zenica, an integrated steel plant, and ArcelorMittal Prijedor, an iron ore mining business which supplies the Zenica plant, will be sold to Pavgord Group.  The company has made considerable investments and efforts to keep ArcelorMittal Zenica and ArcelorMittal Prijedor within the group. However, after a thorough strategic review, the company concluded that a sale is the best solution for the development of the business and its people. Under the terms of the transaction, ArcelorMittal’s shares in ArcelorMittal Zenica and ArcelorMittal Prijedor will be sold to Pavgord Group, and all employees’ jobs are transferred to the new owner. Net of sale proceeds, the company expects to record a non-cash loss on disposal of approximately $0.2bn (including foreign exchange losses recorded in equity since the date of acquisition). The deal is expected to close in the third quarter of 2025, subject to merger control clearance and the fulfilment of all conditions precedent. Until then, all operations of the company will continue as usual, with the full support of the local management team and the company leadership team. “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”, commented Sanjay Samaddar, Vice President ArcelorMittal and chief executive officer, ArcelorMittal Europe – Long Products. Ends About ArcelorMittal ArcelorMittal is one of the world’s leading integrated steel and mining companies with a presence in 60 countries and primary steelmaking operations in 15 countries. It is the largest steel producer in Europe, among the largest in the Americas, and has a growing presence in Asia through its joint venture AM/NS India. ArcelorMittal sells its products to a diverse range of customers including the automotive, engineering, construction and machinery industries, and in 2024 generated revenues of $62.4 billion, produced 57.9 million metric tonnes of crude steel and 42.4 million tonnes of iron ore. Our purpose is to produce smarter steels for people and planet. Steels made using innovative processes which use less energy, emit significantly less carbon and reduce costs. Steels that are cleaner, stronger and reusable. Steels for the renewable energy infrastructure that will support societies as they transform through this century. With steel at our core, our inventive people and an entrepreneurial culture at heart, we will support the world in making that change. ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS).http://corporate.arcelormittal.com/ Contacts: ArcelorMittal Investor Relations        General                +44 20 7543 1128Sustainability        +44 203 214 2490 Bonds/Credit         +33 157 955 035E-mail                investor.relations@arcelormittal.com ArcelorMittal Corporate Communications        Paul Weigh        +44 20 3214 2419E-mail:                 press@arcelormittal.com ArcelorMittal North America CommunicationsChris Mason        +1 219 666 4636E-Mail:                 northamerica.press@arcelormittal.com        

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