The Industrial Development Corporation (IDC) is moving closer to a potentially decisive stage in its evaluation of a possible transaction involving ArcelorMittal South Africa, following the completion of a detailed tax and due diligence assessment conducted by KPMG.
With the report now finalised and submitted, the state-owned development finance institution must formally review the findings before determining its next step in relation to the steel producer.
The completion of the process was confirmed to Newcastillian News by the IDC, which verified that KPMG has concluded its due diligence work on AMSA.
According to the institution, the assessment followed a structured engagement process. KPMG was initially appointed through a competitive request for proposals (RFP) in May 2025, before later being re-engaged as a single-source provider to update and expand its assessment in response to new developments at the company.
Responding to written questions, the IDC’s Head of Corporate Affairs, Tshepo Ramodibe, stated;
“KPMG has completed its due diligence on AMSA, and the IDC should now be given space to engage with findings of this process. Importantly, in no way should this process be construed as binding to future interventions or non-thereof that IDC would have to make regarding AMSA.”
Ramodibe further explained that KPMG’s initial appointment was made through a competitive RFP process in May 2025 to conduct financial and tax due diligence on AMSA, with that phase concluding in November 2025.
However, as conditions at AMSA shifted during February 2026, the IDC instructed that the assessment be updated to reflect the company’s evolving operational and financial position.
He added that KPMG’s prior involvement and continuity of insight were central to its reappointment as a single-source service provider.
The decision, he said, was taken in accordance with IDC procurement policy, which allows for restricted bidding where there is a clear justification for limiting the process to one supplier.
According to Ramodibe, continuity was considered necessary for efficiency and cost control, while also avoiding delays that may have arisen had a new advisory firm been introduced at a later stage.
He further noted that the approach is consistent with National Treasury guidelines governing limited procurement processes.
With the second phase of due diligence now concluded and the final report delivered, the responsibility has shifted to the IDC to assess the findings and determine its next course of action.
This comes at a time when the institution already holds substantial financial exposure to AMSA.
Nevertheless, what are your thoughts on this? Which way do you think this will swing? Let us know below.
Be sure to read: Newcastle Works Still Has No Deal as AMSA Issues Fresh Warning
2 Responses
Hy am Thabo Pulutsoana,I think the best way is for government to take over and open plant like Vaal meltshop, because Tubular products is running,the problem is input material,so buy opening Vaal meltshop Tubular we be in the position of running production,and Eskom must come into party by reducing electricity price by doing so I see there decline of unployement
ArcelorMittal Newcastle works must start up the mills , medium mill & bar mill products are highly productive. Rod mill products are mostly used by large suppliers. All is up to government to give IDC greenlight then a transaction can happen.