After a series of iterations, the Italian Parliament finally decided to withdraw the pollution immunity of ILVA steel plant from November 3, 2019. Subsequently, ArcelorMittal said on November 4 that it would withdraw from the acquisition of the Liwa steel plant.

It is understood that previously, ArcelorMittal had proposed in the conditional acquisition agreement signed with Riva iron and steel plant that if the Italian government issues a new environmental protection law, which seriously damages the production and operation capacity of Riva iron and steel plant, ArcelorMittal has the right to withdraw from the acquisition. According to the plan, ArcelorMittal will invest 2.4 billion euros ($2.656 billion) to resume the operation of the Liwa steel plant, of which 1.2 billion euros ($1.328 billion) will be used for pollution control, and it is planned to achieve the environmental control goal by 2024. Because of this, the Italian government has granted ArcelorMittal certain pollution immunity, providing a buffer time for it to help the Riva steel plant reach environmental standards.

ArcelorMittal said that in addition to the removal of pollution immunity, relevant Italian government departments also required it to meet certain environmental protection requirements by December 13, 2019, otherwise it would shut down the No. 2 blast furnace of Liwa iron and steel plant. ArcelorMittal doesn't think he can finish the task by this deadline. In addition, the closure of the blast furnace and other specific events have increased legal and business uncertainty, which will significantly reduce ArcelorMittal's ability to advance its production and operation plan at the Riva steel plant. Based on this, ArcelorMittal decided to withdraw from the acquisition of Liwa steel plant.

ArcelorMittal's decision came under severe criticism in Italy, saying it would cost Italy thousands of jobs. (From Csteel)