ArcelorMittal announces the commencement of a new share buyback program of 60,431,380 shares for 2022-20

Rhea-AI Summary

On July 29, 2022, ArcelorMittal announced a new share buyback program to repurchase 60,431,380 shares, totaling approximately $1.4 billion. This initiative is part of a broader strategy, bringing total buybacks for 2022 to around $3.4 billion. The program, authorized by shareholders on May 4, 2022, aims to fulfill obligations related to debt and employee share programs and to reduce share capital. The completion is anticipated by May 2023, subject to market conditions. Notably, a significant shareholder opted not to participate in this program.

Positive

• New buyback program of 60,431,380 shares valued at approximately $1.4 billion enhances shareholder value.
• Total buybacks in 2022 now reach approximately $3.4 billion, indicating strong financial health.

Negative

• Significant shareholder's non-participation may signal a lack of confidence in the buyback program.

29 July 2022, 11:00 CET

Following publication of the second quarter 2022 and half year 2022 results press release dated 28 July 2022 (the “ER Press Release”)¹, ArcelorMittal announces a new share buyback program of 60,431,380 shares in the amount of approximately US$1.4 billion (at current share price²) (the “Program”) under the authorization given by the annual general meeting of shareholders of 4 May 2022, bringing the total 2022 buybacks announced so far to approximately US$3.4 billion. For the background to this Program, reference is made to the ER Press Release. The Program is expected to be completed by the end of May 2023, subject to market conditions.

The Significant Shareholder has decided not to participate in the Program consistent with the position announced in the press release dated 25 February 2022³.

The shares acquired under the Program are intended:

1)   To meet ArcelorMittal’s obligations under debt obligations exchangeable into equity securities;
2)   To reduce ArcelorMittal’s share capital, and/or;
3)   To meet ArcelorMittal’s obligations arising from employee share programs.

ENDS

About ArcelorMittal

ArcelorMittal is the world's leading steel and mining company, with a presence in 60 countries and primary steelmaking facilities in 16 countries. In 2021, ArcelorMittal had revenues of $76.6 billion and crude steel production of 69.1 million metric tonnes, while iron ore production reached 50.9 million metric tonnes.

Our purpose is to produce ever smarter steels that have a positive benefit for people and planet. 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.

ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS).

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

Contact information ArcelorMittal Investor Relations
General	+44 20 7543 1128
Retail	+44 20 3214 2893
SRI	+44 20 3214 2801
Bonds/Credit E-mail	+33 171 921 026 investor.relations@arcelormittal.com
Contact information ArcelorMittal Corporate Communications
Paul Weigh Tel: E-mail:	+44 20 3214 2419 press@arcelormittal.com

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¹ https://corporate.arcelormittal.com/media/press-releases/arcelormittal-reports-second-quarter-2022-results
² Based on share price as at 26.07.22 of $22.90/share
³ https://corporate.arcelormittal.com/media/press-releases/arcelormittal-announces-that-its-significant-shareholder-has-decided-not-to-further-participate-in-its-1-billion-share-buyback-program

FAQ

What is ArcelorMittal's new share buyback program announced in July 2022?

ArcelorMittal's new share buyback program involves repurchasing 60,431,380 shares for about $1.4 billion, raising total buybacks for 2022 to approximately $3.4 billion.

Why is ArcelorMittal conducting a share buyback in 2022?

The buyback aims to meet obligations related to debt securities, reduce share capital, and address employee share programs.

When is ArcelorMittal's buyback program expected to be completed?

The buyback program is expected to be completed by the end of May 2023, depending on market conditions.

How does the new buyback program affect ArcelorMittal's stock price?

The buyback program is likely to enhance shareholder value and could positively impact the stock price due to reduced outstanding shares.