The first privatisation of President Javier Milei’s government is set to be announced soon, according to government sources.
The IMPSA metallurgical company, which once exported technology to dozens of countries but today is heavily indebted, was listed in Milei’s sweeping ‘Ley de Bases’ as a candidate to be sold off to private hands.
IMPSA, with a century of history, managed during its prime to export technology to many countries, but has fallen into financial troubles, with its debt load rumoured to be around US$500 million. Around US$300 million of that is unpaid debt from the venezuelan government.
Industry rumours say the frontrunner to buy the firm is US company ARC Energy, a leader in the oil and gas equipment sector.
The company is expected to make a proposal to the government imminently.
If accepted, there will later be a two-month deadline set for improvements to the offer to be made and to allow other interested parties to come forward.
IMPSA is seen as a key acquisition for ARC due to its ability to produce technology, hydroelectric generation equipment, and even nuclear components.
An export market may open for IMPSA in the United States with the takeover.
The company’s assets, believed to be worth some US$500 million, include the contracting of some 700 highly-skilled qualified workers.
IMPSA was founded in 1907 by the Pescarmona family and at its peak had operations in 30 nations. Today, Argentina’s government holds 63.7 percent of the company via the FONDEP state trust fund, with 31.2 percent in the hands of the Mendoza provincial government.
– TIMES/NA
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