ROME (Reuters) – Steel giant ArcelorMittal <MT.AS> has reached a deal with trades’ unions over its planned purchase of Italy’s Ilva steelmaker, ending months of uncertainty over the contested takeover, sources said on Thursday.
ArcelorMittal signed a preliminary deal last year to buy Ilva, which has the largest steel-producing capacity in Europe, but the accord was thrown into doubt by Italy’s new, anti-establishment government when it took office in June.
However Thursday’s agreement with unions over staffing levels will now make it impossible for the government to block the pact.
Under the deal, ArcelorMittal agreed to take on 10,700 of the current 13,500 workforce at Ilva, with 250 million euros (224 million pounds) put aside to pay for planned lay-offs, said the two sources who were familiar with the negotiations.
(Reporting by Massimiliano Di Giorgio, Editing by Crispian Balmer)