Luxembourg steel and mining company ArcelorMittal announced Friday that it has sold its 35% stake in Gestamp Automoción to the majority shareholder for €875 million.
ArcelorMittal had entered into a joint venture with the majority shareholder, the Riberas family, in 1998 with a view to developing through Gestamp the business of stamping, assembly and welded blanks for automotive original equipment manufacturers (OEMs). Gestamp has become a global market leader in the design and manufacture of metal components and assemblies for sale to automotive OEMs, with a leadership position in hot-stamped technology, and now holds 95 plants across 20 countries to its name. These plants supply to major car manufacturers from Europe, the Americas and Asia.
ArcelorMittal announced that despite selling its share in Gestamp, it will be continuing its supply relationship with the designer and manufacturer through its 35% shareholding in Gonvarri, a sister company of Gestamp, to which it sells coils for processing before they are passed to Gestamp and other clients. ArcelorMittal will reportedly also maintain its board presence in Gestamp, as well as collaborate in automotive research and development and remain its major steel supplier.
"The sale of our stake in Gestamp unlocks substantial value for ArcelorrMittal's shareholders and is consistent with our stated strategy of portfolio optimisation," commented Aditya Mittal, CEO of ArcelorMittal Europe and group CFO. "Most importantly, our major supplier relationship with Gonvarri and Gestamp is unaffected by this transaction and we will continue to work together to supply automotive OEMs with world-class automotive steel products."
"Our commitment to growth and market leadership is part of our DNA and we have been proud to have ArcelorMittal as a loyal and reliable partner in this long-term endeavour," added Francisco J. Riberas, president and CEO of Gestamp. "Looking ahead, Gestamp and Gonvarri will continue their strategic relationship with ArcelorMittal in our common interest."
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