Posted on 03 Nov 2025
ArcelorMittal has completed the sale of ArcelorMittal Zenica and ArcelorMittal Prijedor, its steel and mining operations in Bosnia and Herzegovina, to H&P d.o.o. Zvornik, part of the Pavgord Group, Kallanish learns.
The sale was first announced in June, following the signing of a sale and purchase agreement (see Kallanish 20 June).
Earlier, ArcelorMittal said that it has made considerable investments and efforts to keep ArcelorMittal Zenica and ArcelorMittal Prijedor within the group.
“However, after a thorough strategic review, the company concluded that a sale is the best solution for the development of the business and its people,” it adds.
Under the terms of the transaction, ArcelorMittal’s shares in ArcelorMittal Zenica and ArcelorMittal Prijedor will be sold to Pavgord Group, and all employees’ jobs are transferred to the new owner. Net of sale proceeds, the company expects to record a non-cash loss on disposal of approximately $200 million, including foreign exchange losses recorded in equity since the date of acquisition.
“We acknowledge the support of the government of Bosnia and Herzegovina, and the government of the Federation and Republika Srpska, during the 21 years that the company has been operating in the country,” ArcelorMittal vice president and chief executive Sanjay Samaddar stated in June. “We believe the company will continue to be a major contributor to the economy of Bosnia and Herzegovina and we thank all our employees at ArcelorMittal Zenica and ArcelorMittal Prijedor for their hard work and passionate engagement during all these years and wish them all the best for the future, as well as to Pavgord Group in this new phase.”
ArcelorMittal Zenica is the largest producer of long products in the Balkans with a capacity of 700,000 tonnes/year. The basic product range includes rebar in bars and coils, wire rod, mesh and lattice girders.
Source:Kallanish
