Mittal Steel makes Arcelor bid

Manufacturing News, Source : TheManufacturer.com
Published : 27 Jan 2006 12:12

Mittal Steel, the world's largest steelmaker, has made an €18.6 billion (£12.7 billion) bid for rival firm Arcelor.

Shares in the two firms were suspended earlier today (Friday) in anticipation of a bid being made. If approved by Arcelor investors, the deal would create a giant steel firm with more than 250,000 employees and revenues in excess of $50 billion.

The news comes just days after Luxembourg-based Arcelor won a fierce bid battle to acquire Canadian firm Dofasco for €3.95 billion euros (£2.7 billion).

Mr Chairman and CEO Lakshmi N. Mittal said in a statement: “The last ten years have seen a major shift towards consolidation of the steel industry, helping to create sustainable value for all stakeholders. Both Mittal Steel and Arcelor have been at the forefront of this consolidation and share a similar vision for the future of our industry. This combination accelerates this process and leaves us uniquely positioned to benefit from the opportunities created.

“We believe the offer provides a very attractive premium and has been structured so that Arcelor shareholders have the opportunity to participate in the exciting growth potential of the combined company, whilst also receiving a generous cash element. We would encourage them to consider the merits of our compelling offer and play a part in the future of the world’s only global steel company.”

Talk of a bid for Arcelor sparked a global rally in steel stocks, with many shares rising more than eight per cent, including India's Tata Steel, and Corus and ThyssenKrupp in Europe, according to reports.

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