ArcelorMittal offers $542m for Acindar

Source: Manufacturing Digital

Date :02/10/2007 06:56:23

ArcelorMittal intends to launch a cash offer to acquire the 34.7 percent of Argentina's Acindar it does not currently own.

The world's largest steelmaker, said Tuesday it would pay US$542 million to buy the third of Argentine steel company- expanding its firm grip on the Latin American market.

ArcelorMittal - already operating as one company even though Mittal Steel Co. NV still its takeover of Arcelor SA is not complete - will offer Acindar shareholders 5.75 Argentine dollars (US$1.83) in cash.

ArcelorMittal said the purchase will cost a total of 1.7 billion Argentine dollars.

Growing markets

The company is keen to expand into rapidly growing markets in Latin America, Asia and Central and Eastern Europe.

ArcelorMittal Chief Executive Lakshmi Mittal said Acindar would benefit from more investment and a better presence in Latin American markets.

He added: "Latin America is a very important steel market with great potential for further growth and one which we have identified as a key region for expansion.

ArcelorMittal said JP Morgan was acting as exclusive arranger and dealer manager, with Bruchou, Fernandez Madero & Lombardi acting as legal advisor to ArcelorMittal in connection with the offer.

The deal will be officially launched within the next four months but will need regulatory approval from the Argentine Securities Commission.

ArcelorMittal's Brazilian operations are a key part of ArcelorMittal, a steel titan with 10 percent of global production.

October 2 2007

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