ArcelorMittal said Monday that he refuses the deal to buy Italian steel company Ilva after the government withdrew the previously agreed upon guarantee of legal immunity in respect of its operations.
"the Agreement provides that in the case that the new law affects the plan for environmental protection for the plant in Taranto with the aim of a material breach of the possibility of its exploitation or implementation of its industrial plan, the company has a contractual right to withdraw from the transaction. From 3 November 2019, the Italian Parliament abolished the legal protection necessary to implement their company environmental plan without the risk of criminal liability that justifies a recall notice", - stated in the message of ArcelorMittal.
This decision will be a severe blow for the ruling coalition in Italy, which had hoped to persuade steel giant from the termination of the contract and will supply additional questions about the reliability of Italy as a reliable partner in the protection of foreign investments.
last year, ArcelorMittal entered into an agreement to purchase the steel plant in Taranto, providing more than 8,000 jobs in the region with one of the highest unemployment rates in Italy.
the Promised legal protection would protect managers from ArcelorMittal prosecution associated with environmental pollution.
However, the ruling movement "5 stars" opposed the extension of legal exceptions, saying that it was unfair to local residents who could be affected by air pollution.
Now the inhabitants of Taranto can suffer from total unemployment and rising crime.
the Company said that its withdrawal will take effect within 30 days.
