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Bloomberg News reports that ArcelorMittal’s negotiations to sell its South African unit have stalled over valuation.

Bloomberg News reported Thursday that the talks between ArcelorMittal and state-owned Industrial Development Corporation to sell their South African unit have been stalled due to valuation differences. The report was based on people familiar with this matter.

The report stated that while the parties could still come to an agreement about the fate of ArcelorMittal South Africa by the 30th of September, they want much more than was offered.

Bloomberg reported that offers of up to 7 billion rand (398.6 millions dollars) have been discussed for the South African division.

ArcelorMittal's South African unit, IDC and its South African division did not respond immediately to requests for comments. Could not verify the report immediately.

ArcelorMittal South Africa, in a Tuesday statement to the Johannesburg stock exchange, said that the company was exploring different strategic options. The IDC had also been performing due diligence on the company. And the government pursued structural interventions.

The Luxembourg-headquartered company said in July that talks with the South African government have so far yielded little progress to avert the closure of its loss-making long steel operations at its South African unit.

ArcelorMittal South Africa delayed the closure in March after IDC invested 1.683 billion Rands.

The number two steelmaker in the world said previously that the closure of the plant could not be delayed beyond September 30, unless a quick solution was found.

IDC owns about 8.2% of ArcelorMittal South Africa. This makes it the second-largest stakeholder, after ArcelorMittal.

(source: Reuters)