STEEL producer ArcelorMittal SA was still interested in an empowerment deal after a controversial black empowerment transaction with Imperial Crown Trading fell through, according to a report
ArcelorMittal SA announced last August that one of its subsidiaries would buy ICT for R800-million, as long as ICT was awarded mining rights for the portion it held in the Sishen mine in the Northern Cape.
At the time, it was also announced that ICT shareholders would be included in a black economic empowerment deal with ArcelorMittal.
Shareholders in ICT include President Jacob Zuma's son Duduzane and Atul Gupta. The Gupta family has close links to the ANC.
On Monday, ArcelorMittal SA said the BEE deal had been cancelled.
"Shareholders are advised that the parties involved in the BEE transaction have not agreed on an extension for the satisfaction of the conditions precedent and that the subscription and shareholders' agreement has therefore lapsed," it said.
ArcelorMittal spokesperson Themba Hlengani said that empowerment "remains a priority for us as a company".
He was not immediately available yesterday to explain further as he was in a meeting until 3pm.
In February this year, on the release of the company's annual results, ArcelorMittal SA chief executive Nonkululeko Nyembezi-Heita said discussions about the BEE deal with ICT may have been "premature".
Shareholders had expressed "various reservations and criticisms" about the deal, and these would be taken into account, she said.
The deal was also conditional on legal battles over its stake in the Sishen mine being resolved in ICT's favour.
BEE a priority - ArcelorMittal
STEEL producer ArcelorMittal SA was still interested in an empowerment deal after a controversial black empowerment transaction with Imperial Crown Trading fell through, according to a report
ArcelorMittal SA announced last August that one of its subsidiaries would buy ICT for R800-million, as long as ICT was awarded mining rights for the portion it held in the Sishen mine in the Northern Cape.
At the time, it was also announced that ICT shareholders would be included in a black economic empowerment deal with ArcelorMittal.
Shareholders in ICT include President Jacob Zuma's son Duduzane and Atul Gupta. The Gupta family has close links to the ANC.
On Monday, ArcelorMittal SA said the BEE deal had been cancelled.
"Shareholders are advised that the parties involved in the BEE transaction have not agreed on an extension for the satisfaction of the conditions precedent and that the subscription and shareholders' agreement has therefore lapsed," it said.
ArcelorMittal spokesperson Themba Hlengani said that empowerment "remains a priority for us as a company".
He was not immediately available yesterday to explain further as he was in a meeting until 3pm.
In February this year, on the release of the company's annual results, ArcelorMittal SA chief executive Nonkululeko Nyembezi-Heita said discussions about the BEE deal with ICT may have been "premature".
Shareholders had expressed "various reservations and criticisms" about the deal, and these would be taken into account, she said.
The deal was also conditional on legal battles over its stake in the Sishen mine being resolved in ICT's favour.
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