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Argentina privatizes state metal company in Milei era

Argentina's government has privatized metallurgical firm IMPSA, the economy ministry stated on Wednesday, marking its first privatization considering that libertarian President Javier Milei took power just over a year ago guaranteeing to diminish the state.

The company's shares will be moved to the U.S.-based consortium Industrial Acquisition Fund (IAF), whose leading partner is Arc Energy, according to an official announcement on Wednesday.

A government commission evaluated quotes for IMPSA's sale and recommended awarding shares held by provincial and national governments to the IAF consortium. Milei campaigned on pledges to downsize Argentina's government by cutting and privatizing state-owned companies state financing to private companies, as part of his goal of attaining a absolutely no deficit budget.

IAF proposed a $27 million capital injection while asking for till January 31 to protect the refinancing of IMPSA's. $ 576 million in financial obligation owed to creditors, the economy ministry. said in a statement.

The company must protect financial institution approval to renegotiate the. debt before the contract for the purchase and transfer of shares. is settled, the statement noted.

Founded in 1907, IMPSA makes devices such as. turbines, cranes, and reactors for metallurgy, energy. generation, and technology sectors.

(source: Reuters)