ArcelorMittal SA (AMSA) has narrowed its loss to R2.6 billion, and the company is in takeover negotiations with the state-owned Industrial Development Corporation (IDC).
The IDC is expected to submit a non-binding offer for the business. The parties had already negotiated in 2025, but an informal proposal of R8.5 billion was rejected, which would have included R7 billion in debt to AMSA’s parent.
The ArcelorMittal Group is based in Luxembourg and holds around two-thirds of the company.
Talks between the IDC and the Department of Trade and Industry started in November 2023, when AMSA announced it would close its Long Steel business, which is essential for the automotive and mining industries.
Despite the IFC offering a loan to stop the closure, the winding-down process started last year.
AMSA still operates a mill in Vanderbijlpark and has idled facilities in Pretoria and Saldanha. The IDC reportedly sees the mills as essential to the nation’s industrial sector.
AMSA was previously a state-owned company, formerly known as Iscor. It became privatised and listed in 1989. It was then acquired by billionaire Lakshmi Mittal in 2003. Mittal was then combined with Arcelor to form ArcelorMittal.
In its latest financial statements, AMSA said that progress in discussions with the IDC will share the company’s outlook for 2026 and beyond.
“Depending on the outcome of these discussions, ArcelorMittal South Africa will execute its strategy to improve core business profitability and balance sheet resilience,” said AMSA.
Loss narrows
In its 2025 financial results, AMSA said that Longs Business was formally wound down into care and maintenance by the end of 2025.
Its impact on EBITDA was neutralised in 2025, compared with a R1,668 million loss in the prior period.
“No production activities are currently taking place at the Newcastle facility. The primary objective for this site will be its conversion into an industrial park, and the monetisation of selected assets and inventories to contribute positively to earnings from 2026 onwards,” said AMSA.
“Partnership and/or sales opportunities will be evaluated based on commercial viability.”
Revenue decreased by 16% to R32 billion, mainly due to a 12% decrease in total sales volumes, a 5% fall in net realised steel sales prices.
Second half revenue of R15,173 million was 11% down (2025 H1: R17,118 million) compared to the immediately preceding six months.
That said, the EBITDA loss decreased from R2 947 million in 2024 to R1 098 million. Second half 2025 EBITDA loss of R988 million increased compared to the first half loss of R110 million.
The attributable loss for the year amounted to R2 900 million (260 cents loss per share), compared with a loss of R5,839 million (524 cents loss per share) in 2024.
AMSA also posted a headline loss of R3,355 million (301 cents loss per share) against a loss of R5,102 million (458 cents loss per share) in the comparable period.
| AMSA Financials | 2025 | 2024 |
|---|---|---|
| Revenue (R million) | 32 291 | 38 596 |
| Loss from operations (R million) | (1 894) | (4 447) |
| Loss for the year (R million) | (2 900) | (5 839) |
| Loss per share (cents) | (260) | (524) |
| Headline loss (R million) | (3 355) | (5 102) |
| Headline loss per share (cents) | (301) | (458) |
| EBITDA margin (%) | (3.4) | (7.6) |
| Net borrowings (R million) | 6 448 | 5 111 |
| Net borrowings to equity (%) | (2 034.1) | 260.2 |
