Argentina's Historic Privatization: IMPSA's New Ownership

Argentina has privatized the metallurgical firm IMPSA, marking its first privatization since President Javier Milei aimed to reduce the state's size. IMPSA's shares are being transferred to Industrial Acquisition Fund, led by Arc Energy. The transfer involves a $27 million capital injection and debt refinancing talks.

In a significant move for Argentina's economic policy, the government has privatized the metallurgical firm IMPSA, marking the first such privatization under libertarian President Javier Milei. This step aligns with Milei's campaign promise to streamline the state by reducing its ownership in various sectors.

The shares of the century-old IMPSA will be transferred to the U.S.-based consortium Industrial Acquisition Fund (IAF), with Arc Energy as a leading partner. An official announcement confirmed that a government commission reviewed and approved the bid to award shares held by national and provincial entities to IAF.

The consortium has promised a $27 million capital injection and has until January 31 to secure refinancing for IMPSA's $576 million debt, with creditor approval needed to finalize the transfer. Founded in 1907, IMPSA produces specialized equipment for metallurgy and energy sectors.

(With inputs from agencies.)