http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 16.31Change: -0.01
R/$ = 14.22Change: 0.03
Au 1292.99 $/ozChange: 1.84
Pt 1079.50 $/ozChange: 3.50
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters About Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Sep 26, 2011

Mittal pulls back from BEE deal, confirms R1.1bn Newcastle loss

Back
Africa|Cleaning|Concrete|Gas|Reinforcing|Africa|Cleaning|Product|Steel|Iron Ore|Iron-ore
Africa|Cleaning|Concrete|Gas|Reinforcing|Africa|Cleaning|Steel|Iron Ore|Iron-ore
africa-company|cleaning-company|concrete|gas|reinforcing|africa|cleaning|product|steel|iron-ore|iron-ore-person



Steel producer ArcelorMittal South Africa's (Mittal's) controversial R9-billion black economic-empowerment (BEE) transaction with the Ayigobi Consortium, which includes a number of politically connected South Africans, has lapsed.

The JSE-listed company, led by CEO Nonkululeko Nyembezi-Heita, on Monday withdrew its cautionary announcement relating to the BEE transaction and said that the parties failed to agree on an extension of conditions.

The consortium was led by Sandile Zungu and includes Mabelindile Luhlabo, Mojalefa Mbete, Jagdish Parekh's Pragat Investments, Prudence Mtshali, Phemelo Sehunelo, Zebo Tshetlho, Zungu's Zico, the Gupta family's Oakbay Investments and Duduzane Zuma's Mabengela Investments.

The remaining 25% of the consortium was set aside for women and youth groups, as well as new BEE entrants.

The BEE transaction, unveiled in August last year, had been criticised by minority shareholders for lacking a broad-based dimension.

The BEE deal was announced alongside the proposed R800-million acquisition of Imperial Crown Trading, after JSE-listed Kumba Iron Ore said it had cancelled a cost-plus 3% iron-ore supply agreement for 2.25-million tons a year of Sishen material, after Mittal failed to convert its Sishen rights.

Meanwhile, Mittal also said it expected to lose about R1.1-billion after the structural failure of a gas-cleaning plant at its Newcastle facility last month.

The R1.1-billion estimate included property damage of R245-million.

The August 5 structural failure, which rendered the blast furnace inoperable, would have a 445 00 t impact on Mittal’s production.

It reported that repairs were progressing according to plan and that the furnace would be recommissioned in the first week of December.

The company had secured 240 000 t of steel from various sources, including from ArcelorMittal Group mills globally, to minimise the impact of product shortage in South Africa.

The South African Reinforced Concrete Engineers Association warned in August that the Newcastle shutdown could further exacerbate ongoing shortages of reinforcing steel, or rebar.

Mittal closed at R58.39 a share, up 1.92% from Friday's R57.29 a share.
 

Edited by: Creamer Media Reporter

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
 
Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
 
Latest News
Environmental Affairs Minister Edna Molewa
Cabinet has extended the contract of Department of Environmental Affairs (DEA) director-general Nosipho Ngcaba and approved the appointment of Limpho Makotoko as the new DEA COO.     “Under the leadership of Ngcaba, the DEA has consistently received clean and...
Mzwandile Masina
The Department of Trade and Industry (DTI) has invited companies to participate in a trade and investment mission to Ghana and Nigeria from August 8 to 12.   Companies in the agriculture and agroprocessing sectors, built environment professionals, automotive and...
Cabinet has approved the Industrial Policy Action Plan (Ipap) 2016/17 to 2018/19, which seeks to achieve a higher-impact industrial policy in difficult economic circumstances, including the difficulties faced by the domestic steel industry and the drought which has...
More
 
 
Recent Research Reports
Automotive 2016: A review of South Africa's automotive sector (PDF Report)
Creamer Media’s Automotive 2016 Report provides an overview of South Africa’s automotive industry over the past 12 months. The report provides insight into local demand and production, vehicle imports and exports, investment and competitiveness in the sector, as well...
Energy Roundup – April 2016 (PDF Report)
The April 2016 roundup covers activities across South Africa for March 2016 and includes details of a North Gauteng High Court Judge’s dismissal of a court application to postpone the 9.4% electricity tariff increase, which the National Energy Regulator of South...
Electricity 2016: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2016 report provides an overview of South Africa’s electricity sector, focusing on State-owned power utility Eskom and independent power producers, electricity planning, transmission, distribution and the theft thereof, besides other issues.
Energy Roundup – March 2016 (PDF Report)
The March 2016 roundup covers activities across South Africa for February 2016 and includes details of the Department of Energy’s plans to announce the preferred bidders for the first tranche of the coal independent power producer procurement programme; the Council...
Steel 2016: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2016 Report examines South Africa’s steel industry over the past 12 months. The report provides insight into the global steel market and and particularly into South South Africa’s steel sector, including production and consumption, main...
Construction 2016: A review of South Africa's construction industry (PDF Report)
Creamer Media’s Construction 2016 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; key participants; local demand; geographic diversification; corporate activity; black economic...
 
 
 
 
 
This Week's Magazine
The two spent-fuel pools at Eskom’s 1 800 MW Koeberg nuclear power station, in the Western Cape, will be full by 2018, increasing the urgency on the State-owned utility to begin pursuing alternative storage options. Koeberg has, over the past 32 years, accumulated a...
South Africa lacks the skills necessary to implement the government’s plan to build 9.6 GWe of new nuclear energy capacity, warns nuclear-qualified Quality Strategies International CEO David Crawford. “Apart from the concern about the affordability of the programme,...
DOROS HADJIZENONOS The 700-series devices provide network security monitoring, app control, URL filtering, VPN security, antivirus, antispam, antibot, and advanced intrusion prevention and detection functionality
Cybersecurity multinational Check Point has released its latest 700-series cybersecurity systems for small businesses, which draw on its international threat intelligence to provide up-to-date cybersecurity, says Check Point South Africa country manager Doros...
Daimler Trucks and Buses Southern Africa (DTBSA) saw a marked slip in new-vehicle sales in 2015 compared with 2014, with sales dropping from 5 897 units to 5 300 units. The decline came as the South African new truck and bus market declined from 31 558 units in 2014...
Group of 20 (G-20) economies threatened to penalise havens that don’t share information on their banking clients after the leak of the Panama Papers provoked a global uproar over tax evasion. The G-20 will consider “defensive measures” against financial centers and...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $149 Close
Subscribe Now for $149