ArcelorMittal’s $1.7 billion dollar energy supply agreement with a subsidiary of the Federal Electricity Commission (CFE).

RDA | Rodríguez Dávalos Abogados advised ArcelorMittal on the negotiation

ArcelorMittal, a transnational steel and petrochemical company, has negotiated the terms and conditions of a USD$1.7 billion dollar energy supply agreement with a subsidiary of the Federal Electricity Commission (CFE). Thus, obtaining favorable price adjustment mechanisms and a long term energy supply commitment, resulting in steady pricing in face of a volatile power market in a region characterized for the lack of supply.

This transaction involved other jurisdictions: Mexico and United States.

The importance of this transaction is that this agreement is the greatest energy supply contract in the Mexican Wholesale Power Market (MEM). The CFE’s subsidiary will supply power and associated products equivalent to 600 megawatts to ArcelorMittal’s plant in Lazaro Cardenas, Michoacan. This plant has the necessary technology to manufacture a variety of ultra-low carbon steel, micro-alloy steel, high-carbon steel, bitter-gas resistant steel, among others, and is one of the largest energy consumers in Mexico.

ArcelorMittal, is the world’s leading steel and mining producer, with industrial plants in 19 countries, commercial representation in more than 60 countries and nearly 210,000 workers around the globe.

Rodríguez Dávalos Abogados (RDA) advised ArcelorMittal with a team including Raul F. Romero (Picture), Juan Pablo López and Luis Martinez.

 

Involved fees earner: Raúl Romero – Rodríguez Dávalos Abogados; Juan Pablo López – Rodríguez Dávalos Abogados; Luis Martinez – Rodríguez Dávalos Abogados;

Law Firms: Rodríguez Dávalos Abogados;

Clients: ArcelorMittal;