Finance · South Africa
Amsa and IDC Restart Talks on R8.5bn Steel Mill Deal
Moneyweb · 2026/01/21
Summary
The Association of Mineworkers and Construction Union (Amsa) and the Industrial Development Corporation (IDC) have resumed discussions regarding a deal to acquire steel mills. Previously, talks broke down when ArcelorMittal rejected a non-binding offer worth roughly R8.5 billion. This offer included repaying R7 billion owed in debt to ArcelorMittal's parent company. The reopening of talks suggests there is still interest in reaching an agreement that could impact South Africa's steel manufacturing industry. Successful negotiations could lead to local ownership of the mills, potentially safeguarding jobs and encouraging economic growth in this sector.
OnABudget takeaway: If the deal goes through, local ownership might stabilize the steel industry, which can protect jobs and support South African businesses. Consumers and investors should watch closely as it could influence steel prices and manufacturing costs.