Mittal Steel N.V., the largest steel company in the world, has launched an offer to the shareholders of Arcelor SA, presently the second largest steel company. Mittal says that the combined company would have a capacity of more than 100 million tons of steel products.
In its announcement of the offer Mittal cited some of the advantages to the combined company, including the scale and scope of the new company, revenues of close to $70 million; a market capitalization of about $40 billion; a leading position in North America, Europe, Central Europe, Africa and South America; and savings of around $1 billion through improved purchasing power.
Mittal Steel also announces today that it has entered into an agreement with ThyssenKrupp AG to resell to ThyssenKrupp all the common shares of Dofasco Inc that Arcelor purchases in its pending tender offer for Dofasco. The deal, completed this week, had Arcelor outbidding ThyssenKrupp for Canadian steel company Dofasco.
Lakshmi Mittal, chairman and CEO of Mittal Steel said: "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."
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