Pavgord buys business units in Zenica and Prijedor: ArcelorMittal also announced the sale

(Patria) - ArcelorMittal announced today the sale of its business units, after signing an agreement for the sale and purchase of its business units in Bosnia and Herzegovina.

"ArcelorMittal Zenica, a fully integrated steel plant, and ArcelorMittal Prijedor, an iron ore mine supplying the Zenica plant, will be sold to the Pavgord group.

The company has invested significant resources and effort over the years to keep ArcelorMittal Zenica and ArcelorMittal Prijedor within its group. However, after a detailed strategic analysis, it was concluded that the sale is the best solution for the further development of the business and the employees of the business units.

In accordance with the terms of the transaction, ArcelorMittal's shares in ArcelorMittal Zenica and ArcelorMittal Prijedor will be sold to the Pavgord group, and all employee jobs will be transferred to the new owner. The company is expected to record an accounting loss of approximately 0.2 billion US dollars (including currency translation losses recorded in equity since the acquisition date), excluding sales revenue.

The transaction is expected to be completed in the third quarter of 2025, after obtaining merger approval and fulfilling all prior conditions for the implementation of the transaction. Until then, all company activities and operations will continue as usual, with the full support of the local management and company leadership.

"ArcelorMittal expresses its gratitude to the institutions of Bosnia and Herzegovina, as well as the authorities of the Federation of BiH and Republika Srpska, for their support during the 21 years the company has operated in this country. We believe that the company will continue to make a significant contribution to the economy of Bosnia and Herzegovina. We thank all our employees at ArcelorMittal Zenica and ArcelorMittal Prijedor for their dedicated work and strong commitment over all these years, and we wish them all the best in the future, as well as the Pavgord group in this new
ArcelorMittal phase," said Sanjay Samaddar, Vice President of ArcelorMittal and CEO of ArcelorMittal Europe.