New Delhi, Oct. 24 -- South Africa is moving towards the proposed Rs.5,400 crore takeover of ArcelorMittal South Africa, the struggling steelmaker controlled by Indian-born billionaire Lakshmi Mittal and his son Aditya Mittal.

South Africa's state-owned Industrial Development Corporation (IDC) has reportedly reached an initial agreement to acquire ArcelorMittal South Africa, with the proposed deal comprising Rs.1,620 crore in cash and the assumption of around Rs.3,780 crore in debt. The reported terms have not been officially confirmed, and the transaction remains subject to final agreements and shareholder approval.

For the Mittals, who lead the global steel group ArcelorMittal, the deal could mark a retreat from a business that has st...