ArcelorMittal sells shipping stake in drive to cut debt
ArcelorMittal said it expected to close the deal before the end of this year
ArcelorMittal (MT.AS), the world's largest steelmaker, has agreed to sell a 50% stake in its shipping business, the first step in its plan to offload $2 billion (1.5 billion pounds) of assets by the middle of 2021 to reduce its debt
The company, whose net debt stood at $10.7 billion at the end of September, said on Monday the sale of the stake in Global Chartering Ltd (GCL) to DryLog Ltd would cut its debt by $530 million. It has a target to pull it below $7 billion.
ArcelorMittal said it expected to close the deal before the end of this year.
GCL operates 28 dry cargo vessels, 25 of which are on long-term leases and three owned outright, and will continue to handle a share of ArcelorMittal's shipments.
Drylog is a subsidiary of Greek shipping company Ceres.