ArcelorMittal has signed a sale and purchase agreement to sell its operations in Bosnia and Herzegovina to Pavgord Group. The deal includes the sale of ArcelorMittal Zenica, an integrated steel plant, and ArcelorMittal Prijedor, an iron ore mining business.
Under the agreement, ArcelorMittal’s shares in the plant and mining business will be sold to the Pavgord Group. All employee jobs will also be transferred to the new owners. In terms of net of sales proceeds, ArcelorMittal expect to record a non-cash loss on disposal of approximately $200m.
ArcelorMittal had previously made investments and efforts to keep the two within the group, but after strategic review, the company stated in a press release that a sale is “the best solution for the development of the business and its people.”
Sanjay Samaddar, vice president at ArcelorMittal, 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”
The deal is expected to close in the third quarter of 2025, subject to conditions. Until then, all operations of the company will continue as usual.
