ArcelorMittal announces share buyback program

Rhea-AI Summary

ArcelorMittal has announced a share buyback program under the AGM Authorization from June 13, 2020. This program allows the company to repurchase shares worth up to US$500 million between September 28, 2020, and March 31, 2021. The buyback is intended to meet obligations from debt exchangeable into equity or to reduce share capital. This announcement follows Cleveland-Cliffs' agreement to acquire ArcelorMittal USA, signaling a strategic move for the company amidst market dynamics.

Positive

• Plan to repurchase up to US$500 million in shares, potentially increasing shareholder value.
• Share buyback aimed to support debt obligations, indicating financial strategy.

Negative

• Share buyback may signify prioritization of capital usage over reinvestment in growth.

28 September 2020, 07:55 CET

ArcelorMittal today announces a share buyback program (the ‘Program’) under the authorization given by the annual general meeting of shareholders held on June 13, 2020 (the ‘AGM Authorization’).

For the background of this program, reference is made to our press release dated 28 September 2020 relating to the announcement of a definitive agreement pursuant to which Cleveland-Cliffs Inc will acquire 100% of the shares of ArcelorMittal USA for a combination of cash and stock.

The shares acquired under the Program are intended i) to meet ArcelorMittal’s obligations under debt obligations exchangeable into equity securities, and/or ii) to reduce its share capital. ArcelorMittal intends to repurchase, between 28 September 2020 and 31 March 2021, shares for an aggregate maximum amount of US$500 million in accordance with the AGM Authorization and applicable market abuse regulations.

ENDS

About ArcelorMittal

ArcelorMittal is the world's leading steel and mining company, with a presence in 60 countries and primary steelmaking facilities in 18 countries. In 2019, ArcelorMittal had revenues of $70.6 billion and crude steel production of 89.8 million metric tonnes, while iron ore production reached 57.1 million metric tonnes.

Our goal is to help build a better world with smarter steels. Steels made using innovative processes which use less energy, emit significantly less carbon and reduce costs. Steels that are cleaner, stronger and reusable. Steels for electric vehicles and renewable energy infrastructure that will support societies as they transform through this century.

With steel at our core, our inventive people and an entrepreneurial culture at heart, we will support the world in making that change. This is what we believe it takes to be the steel company of the future.

For more information about ArcelorMittal please visit: http://corporate.arcelormittal.com/

Contact information ArcelorMittal Investor Relations
Europe	+44 20 7543 1156
Americas	+1 312 899 3985
Retail	+44 20 7543 1156
SRI	+44 20 7543 1156
Bonds/Credit	+33 171 921 026
Contact information ArcelorMittal Corporate Communications
E-mail:	press@arcelormittal.com
Phone:	+442076297988
ArcelorMittal Communications
Paul Weigh	+44 20 3214 2419

FAQ

What is the purpose of ArcelorMittal's share buyback program?

The share buyback program aims to meet obligations under debt exchangeable into equity and to reduce share capital.

How much is ArcelorMittal planning to spend on the share buyback?

ArcelorMittal intends to repurchase shares for an aggregate maximum amount of US$500 million.

When does the ArcelorMittal share buyback program start and end?

The share buyback program runs from September 28, 2020, to March 31, 2021.

How might the buyback affect ArcelorMittal's stock price?

The share buyback could potentially boost ArcelorMittal's stock price by reducing the number of shares outstanding.