Boston, MA 10/29/2013 (wallstreetpr) – For the past several weeks, ArcelorMittal (ADR) (NYSE:MT) which is the world’s largest steel manufacturer has been into hectic deals, apparently geared towards reducing its current $16.2 billion in net debt to $15 billion by end of the F2013. And seemingly these deals have started paying off as can be seen in the company’s stock. In the week ending October 18, the company had its shares appreciate by nearly 12.4% at the NYSE. And in the past 90 days, the steel maker’s shares have appreciated by astounding 25%. The result of this has been increased investor actions on the stock which has continued to the start of this week.
A lot of Arcelormittal’s recent deals to bolster its standing have been touching largely on small steel makers. It has signed several sales agreements so far in attempts to scale down its net debt. The series of these deals include the October 8, sale of its 6.66% holding in Erdemir, a Turkish-based steel manufacturer. This sale earned the company nearly $267 million of cash. Erdemir is one of the small manufacturers that the giant steel maker had invested in. Ahead of the Erdemir deal, Arcelormittal signed an agreement to unload its stake in the Algeria’s steel producer Sider, reducing its hold from the previous 70% to 49%. Sider is a state-owned steel producer in which Arcelormittal had 70% interest before the sell off deal on October 7.
Arcelormittal has also been trying to iron its relationship with other players in the industry. The company on September 27, agreed to resolve longstanding pricing disputes with a South African company. As a result, the two companies also entered talks aimed at signing new ore supply deal. As of close of business on Monday, October 28, the steel maker had its shares settle at $15.63 after a weak run where it lost 3.34% of its share valuation.
