Mittal Steel, the world's biggest steel producer, announced on July 26 that it controls 91.88% of European steel maker Arcelor following its 25-billion-euro takeover bid. "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 a statement.
Mittal said that 594.5 million Arcelor shares and 19.9 million Arcelor convertible bonds had so far been tendered, representing 91.88 % of the group's fully-diluted share capital. As part of the takeover terms, Mittal has issued 665.6 million shares and paid 7.77 billion euros in cash to be paid to the holders of the tendered Arcelor stock. An additional offer period for shareholders yet to tender their Arcelor shares will close on August 17, Mittal Steel said.
Mittal Steel updated the market after announcing on July 18 that it had acquired at least 50% of the shares in the world's number two steelmaker Arcelor, the minimum required for its takeover bid to succeed.
The share and cash bid values Arcelor at about 25.4 billion euros (US$32.4 billion) and would create by far the biggest steel group in the world. The takeover will create a group with 320,000 employees that produces about 116 million tons of steel per year, about 10% of the world market and three times more than Nippon Steel.
Copyright Agence France-Presse, 2006