ArcelorMittal cuts stake in Turkey’s largest steel maker

Reuters/Umit Bektas

Global steelmaker ArcelorMittal SA has lowered its stake in Turkey’s largest steel producer, Erdemir, to two percent, Bloomberg reported, citing people with knowledge of the matter.

The Luxembourg-headquartered company executed a sale of about half of the shares held in Eregli Demir ve Celik Fabrikalari TAS, commonly known as Erdemir — through two local brokerages.

This divestment is a continuation of ArcelorMittal’s strategy initiated in 2012 when it started reducing its Erdemir holding to focus on its core assets, the news agency said.

The divestment process was accelerated in early 2023, with Erdemir’s official ownership data showing Arcelor’s stake falling to less than five percent in March 2023, compared to 12.1 percent at the close of the preceding year.

Last month, steel producers Erdemir and Isdemir announced investing $3.2 billion (96.3 billion lira) to boost production and cut carbon emissions by 25 percent by 2030.