Mittal bids to take over rival Arcelor

27th January 2006, Comments 0 comments

27 January 2006, BRUSSELS — Mittal Steel, the world's largest steelmaker, has made a EUR 18.6 billion bid for its biggest rival, Arcelor.

27 January 2006

BRUSSELS — Mittal Steel, the world's largest steelmaker, has made a EUR 18.6 billion bid for its biggest rival, Arcelor.

Mittal is offering EUR 28.21 a share for the Luxembourg-based Arcelor.

The takeover bid came as somewhat of a surprise despite the fact the steel industry is consolidating rapidly amid a fall in steel prices from their 2005 highs.

If approved by Arcelor investors, the deal would create a giant steel firm with more than 250,000 employees and revenues in excess of USD 50 billion.

The deal is likely to face scrutiny from the European Commission and other competition authorities.

Arcelor employs 12,500 workers in Belgium. It was formed by the merger of Arbed (Luxemburg), Usinor (France) and Aceralia (Spain).

The Wallonian government is considered a major shareholder of Arcelor, which operates the Cockerill plant in Belgium.

Mittal Steel has its headquarters in both London and Rotterdam.

[Copyright Expatica News 2006]

Subject: Belgian news

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