On Friday 20 June 2025, Luxembourg-based steel manufacturer ArcelorMittal announced that it had signed a sale and purchase agreement to sell its operations in Bosnia and Herzegovina.

The agreement concerns ArcelorMittal Zenica, an integrated steel plant, and ArcelorMittal Prijedor, an iron ore mining business supplying the Zenica plant, which will be sold to the Pavgord Group.

According to ArcelorMittal, the company made “considerable investments and efforts” to retain ArcelorMittal Zenica and ArcelorMittal Prijedor within the group. However, following a “thorough strategic review”, it concluded that a sale represented the “best solution” for the future development of the business and its employees.

Under the terms of the transaction, ArcelorMittal’s shares in ArcelorMittal Zenica and ArcelorMittal Prijedor will be sold to the Pavgord Group, with all employee jobs transferred to the new owner. The company noted that, net of sale proceeds, it expects to record a non-cash loss on disposal of approximately $0.2 billion, 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, according to ArcelorMittal.

“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,”said Sanjay Samaddar, Vice President of ArcelorMittal and Chief Executive Officer of ArcelorMittal Europe - Long Products. He added: “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.”