Arcelor Mittal sells share in RAG share for one euro
Global steel giant Arcelor Mittal said on Wednesday that it would sell its 6.5-per cent share in German firm RAG for a symbolic one euro, removing an important obstacle to an initial public offering for RAG.
By Agencies |
FRANKFURT: Global steel giant Arcelor Mittal said on Wednesday that it would sell its 6.5-per cent share in German firm RAG for a symbolic one euro, removing an important obstacle to an initial public offering for RAG.
A spokesman for Arcelor Mittal in Luxembourg said it had struck the deal on Tuesday.
RAG has appealed to its major shareholders to sell their holdings to allow it to be floated on the stock market either this year or early next year.
Energy groups E.ON, RWE and ThyssenKrupp agreed last year to sell their stakes.
European steelmaker Arcelor had dragged its feet because it had valued its share in RAG at 200 million euros during its long and unsuccessful battle last year to ward off a takeover by Mittal Steel.
RAG has interests in energy, coal mining, property and chemicals.
Profits from its public offering should go towards a fund to finance the planned closure of the country's coal mining industry by 2018.
But politicians, both at a federal level and in the western state of North Rhine-Westphalia where RAG's activities are concentrated, have repeatedly called into doubt the idea and proposed breaking up RAG and selling its different divisions.
They argue that this will raise more cash.
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