ArcelorMittal takes 40% stake in Thai steel firm
ArcelorMittal, the world's leading steel company, announced Wednesday it had taken a 40 percent stake in Thai counterpart G Steel.
"G Steel is an important component of our overall emerging markets strategy and will provide ArcelorMittal with a major manufacturing presence in Thailand and the ASEAN region where we expect steel demand to continue growing," said ArcelorMittal chief executive Aditya Mittal.
"We are confident that our global expertise and investment will develop the company's potential and will facilitate an operational, financial and commercial turnaround," he added.
The cost of the deal for the company, which is listed on the Bangkok bourse, was not revealed.
"The amount of capital to be invested by ArcelorMittal will be determined closer to the completion of the transaction," the company said in its statement.
That completion remains conditional "on a reduction in the outstanding liabilities of G Steel and GJ Steel and a range of other conditions, including regulatory approvals and approval of the shareholders of G Steel and GJ Steel," it added.
G Steel and its subsidiary GJ Steel Public Company have a combined annual capacity of over 2.5 million tonnes of steel per annum. The companies together have over 1,400 employees.
© 2011 AFP