Wallonia welcomes Arcelor-Mittal merger
26 June 2006, BRUSSELS — The Wallonian region, which holds a 2.3 percent stake in Arcelor, welcomed on Sunday the firm's merger with Mittal Steel.
26 June 2006
BRUSSELS — The Wallonian region, which holds a 2.3 percent stake in Arcelor, welcomed on Sunday the firm's merger with Mittal Steel.
"For the future of the steel workers of Wallonia, the Wallonian government expresses its satisfaction about the friendly solution reached by Mittal and Arcelor," the regional government said.
Arcelor Chairman Joseph Kinsch said on Sunday that Arcelor's board had unanimously agreed to accept the improved EUR 25.8 billion takeover bid from Mittal Steel on Sunday. The deal will create the world's largest steelmaker.
The deal follows a bitter five-month battle in which Arcelor fought to stave off the takeover bid by entering into merger talks with Russian steel firm Severstal.
But amid mounting shareholder agitation against that idea, Arcelor entered talks this month to end the feud over Mittal's unsolicited takeover plans.
"In the end, it was decided unanimously by the Arcelor board that [it will] recommend the new offer by Mittal Steel," Kinsch said.
The new company will be called Arcelor Mittal and will be based in Luxembourg. Mittal Steel founder Lakshmi Mittal will be president and Kinsch chairman until he retires next year, Reuters reported.
Besides the improved offer, Mittal also made concessions on structure and corporate governance and gave an assurance of no job cuts in Arcelor's European operations to seal the merger.
[Copyright Expatica News 2006]
Subject: Belgian news