Top > Business > 2006 > July > 2006-07-27

Mittal Steel Merges with Arcelor

Mittal Steel this week announced that it now controls 91.88 percent of European steel maker Arcelor following a 25 billion euro takeover bid. As part of the merger, 594.5 million Arcelor shares and 19.9 million Arcelor convertible bonds have been tendered. The deal made steel producers in Japan nervous, for many years Japanese companies had held onto the second position of steel producers, but the Mittal-Arcelor merger now bumps them ? and their market share ? much lower than before. The Mittal-Arcelor merger created a steel conglomerate that can produce three times as much steel as Japan?s Nippon Steel

Mittal launched a hostile offer bid for Arcelor in May, after roughly five months of calculated, sometimes bitter maneuvering on both sides. As the merger shows, the Arcelor board finally recommended an improved bid a month later, which was accepted by Mittal Steel and now paves the way for Mittal-Arcelor to take the steel world by storm.

?I am delighted at this result which is a resounding endorsement of the strategic logic and value of the merger of Mittal Steel and Arcelor, a truly industry transforming deal,? Mittal chairman Lakshmi Mittal said in announcing the merger. ?We are very excited about our future as one company and believe this strong vote of confidence from shareholders paves the way for a speedy integration process, allowing us to realize the full benefits of working together as the undisputed world steel leader.?