MT ArcelorMittal SA ADR

UMB Steel, part of the Romanian construction group UMB, has acquired ArcelorMittal Hunedoara for EUR 12.5 million. The steelmaker, which had a turnover of RON 511 million last year and 477 employees, was affected by rising energy costs and cheap imports. The transaction includes all tangible assets but excludes IT equipment and does not involve the transfer of employees, as production had already ceased.

ArcelorMittal announced three new renewable energy projects in India, aiming to double its renewable energy capacity in the country to 2GW with a total capital expenditure of USD 900 million. These solar and wind projects, including battery storage, will supply clean energy to AMNS India, their steelmaking joint venture. The company's CEO, Aditya Mittal, emphasized that these investments align with their "make a meaningful contribution to the energy transition" goals, proving that "climate responsibility and business performance can go hand in hand."

ArcelorMittal (NYSE:MT) saw a significant increase in short interest during December, with shares short sold growing by 70.7% to approximately 2.93 million shares. This represents 0.4% of the company's shares and a short-interest ratio of 1.9 days. Despite mixed analyst sentiment and a "Hold" consensus rating with a $38.98 price target, the stock traded up 2.5% to $46.31.

S.C. ArcelorMittal Hunedoara S.A. (BVB:SIDG) shares have dropped 28% in the last month, contributing to a 2.7% decline over the past year. Despite this plummet, the company's price-to-sales (P/S) ratio of 1.3x remains higher than most of its Romanian Metals and Mining industry peers, which generally have P/S ratios below 0.6x. This elevated P/S is concerning given the company's revenue deterioration of 39% in the last year and 57% over three years, contrasting sharply with the industry's expected 5.6% growth.

ArcelorMittal will invest approximately $900 million in three renewable energy projects in India, aiming to double its clean power capacity in the country to around 2 GW. These projects, located in Maharashtra, Rajasthan, and Gujarat, will supply AMNS India's steelmaking operations and contribute to the company's decarbonization and green growth objectives. The initiatives include solar, wind, and battery storage components, with completion targeted between 2027 and 2028.

ArcelorMittal has received environmental approval from the Principality of Asturias for an electric arc furnace (EAF) project at its Avilés site in Spain. This project is crucial for the decarbonization of the steel industry in Asturias and will complement an EAF already being installed in Gijón. Although environmental approval has been granted, the final investment decision from ArcelorMittal's board of directors is still pending.