ArcelorMittal, a leading steel and mining company in the world, announced the signing of an agreement with DryLog Ltd (DryLog) on the purchase of shares sale of 50% stake in Global Chartering Limited (GCL), which is fully owned by its shipping business, and later will form a joint venture with tenure of 50:50 with DryLog. The transaction is expected to be completed before the end of 2019.
currently, GCL operates 28 dry cargo vessels of various sizes, 25 of whom are in long-term lease and will be transferred to the joint venture, and the remaining three are in direct ownership.
"the Joint venture will benefit from a combination of relevant knowledge and experience of the two companies, as well as from the extensive annual commitments ArcelorMittal freight, part of which will be performed exclusively by the joint venture," - said the press service of the metallurgical company.
New solutions will allow the joint venture to expand its activities and become an important player in the international shipping industry, said in ArcelorMittal.
Sale of shares and establishment of joint ventures will ultimately affect the net debt of ArcelorMittal for $ 530 million. This deal is part of ArcelorMittal's commitment to unlock up to $ 2 billion from its portfolio of assets by mid-2021.
