ArcelorMittal in Sale of Its Stake in Luxembourg-Based Energy Company Enovos International to AXA Private Equity

ArcelorMittal entered into an agreement to sell its 23.48% stake in Luxembourg-based energy company Enovos International SA for €330 million as part of a larger plan to sell selective non-core assets in order to shore up its balance sheet.

ArcelorMittal has agreed to sell the stake to a fund managed by AXA Private Equity and will be paid in two installments. The first €165 million will be paid once the deal is closed and the remaining portion will be deferred for up to two years, with interest accrued over that period. The deal is expected to close before the end of June and is subject to regulatory approval.

Enovos specializes in the distribution and transmission of natural gas and electricity in Luxembourg, Germany and France. The company’s remaining shareholders include the Luxembourg state with a 25.44% stake, RWE with an 18.36%, E.ON with a 10% stake and Electrabel, a unit of GDF Suez with a 4.7% stake. The City of Luxembourg also owns an 8% stake and investment fund Societe Nationale de Credit et d’Investissement, or SNCI, owns a 10% stake.