Mittal owns nearly 92% of Arcelor
Mittal launched a hostile bid for Arcelor in May after almost five months of intense and bitter manoeuvering.
By Agencies |
LONDON: Mittal Steel, the world's biggest steel producer, announced on Wednesday that it controls 91.88 percent 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 received by media in London.
He added: "We are very excited about our future as one company and believe this strong vote of confidence from shareholders paves the way for a speedy integration process, allowing us to realise the full benefits of working together as the undisputed world steel leader."
Mittal Steel updated the market after announcing on July 18 that it had acquired at least 50 per cent 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 ($32.4 billion) and would create by far the biggest steel group in the world.
Mittal officially launched its hostile offer for Arcelor in May after almost five months of intense and sometimes bitter manoeuvering, but the Arcelor board finally recommended an improved bid a month later.
"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 received by media in London.
He added: "We are very excited about our future as one company and believe this strong vote of confidence from shareholders paves the way for a speedy integration process, allowing us to realise the full benefits of working together as the undisputed world steel leader."
Mittal Steel updated the market after announcing on July 18 that it had acquired at least 50 per cent 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 ($32.4 billion) and would create by far the biggest steel group in the world.
Mittal officially launched its hostile offer for Arcelor in May after almost five months of intense and sometimes bitter manoeuvering, but the Arcelor board finally recommended an improved bid a month later.
Mittal said on Wednesday that 594.5 million Arcelor shares and 19.9 million Arcelor convertible bonds had so far been tendered, representing 91.88 percent 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's takeover would meanwhile create a group with 320,000 employees that produces about 116 million tonnes of steel per year, about 10 percent of the world market and three times more than Nippon Steel.
Arcelor was formed of formerly state-owned interests in France, Luxembourg, Belgium and Spain. Mittal Steel is a quoted, privately owned company registered in the Netherlands but run from London by the Mittal family which is of Indian origin.
Under the terms agreed by Arcelor and Mittal Steel, Arcelor shareholders are to hold 50.6 percent of the combined group, with the rest owned by Mittal investors, including the family's share of 43 percent.
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The two sides have still not resolved the status of Arcelor's Canadian unit Dofasco, which Mittal had promised to sell to the German group Thyssenkrupp once the takeover of Arcelor went through.Start a SIP with as low as ₹500 with ET Money App!
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