South Africa’s Industrial Development Corp. (IDC) is working with financial advisors on a potential offer of around US$491 million to gain control of ArcelorMittal South Africa (AMSA). The bid, if successful, would include the assumption of debt obligations and conclude nearly two years of negotiations between IDC, the government’s Department of Trade and Industry, and AMSA.

Insiders said the IDC plans to seek strategic investors to manage AMSA’s operations. The proposed transaction, largely financed by IDC, would repay a loan provided by ArcelorMittal to its South African unit and include a cash component. No final decisions have been made, and the deal may not proceed.

IDC, the largest shareholder in AMSA, has a six-month agreement with the company to conduct a comprehensive review of its business, expiring on September 30. AMSA operates a flat product plant in Vanderbijlpark, long-product operations, and idle or closed facilities in Pretoria, Saldanha, and an iron ore mine.

Earlier, the South African Federation of Trade Unions (SAFTU) urged the government to renationalize AMSA to preserve jobs amid recent closures affecting 3,500 employees and up to 100,000 indirect jobs.