Mittal and Arcelor merge



Mittal Steel Co. has announced that it has reached an agreement with Arcelor to combine the two companies in a merger of equals to create the world’s leading steel company. The terms of the transaction, which will be effected by way of a tender offer by Mittal Steel for Arcelor shares, have been reviewed by the Arcelor Board which is recommending the transaction to Arcelor shareholders. The combined group, to be domiciled and headquartered in Luxembourg, will be named Arcelor Mittal. Under the terms of the revised offer, shareholders of Arcelor will receive 13 Mittal Steel shares and EUR 150.60 in cash for 12 Arcelor shares. Mittal is also offering to acquire Arcelor Convertible Bonds in a mixed offer of 13 Mittal Steel shares and EUR 188.42 in cash for 12 Arcelor Convertible Bonds. In addition, Arcelor shareholders will have the right to receive a cash and stock mix in any proportion they elect, provided that 31% of the aggregate consideration paid is paid in cash and 69% in stock. The maximum amount of cash to be paid by Mittal will be approximately EUR 8.5 billion and the maximum number of Mittal Steel shares to be issued will be approximately 722 million, assuming the conversion of the outstanding Arcelor Convertible Bonds Based on the Mittal Steel share closing price on the NYSE on 23 June, the revised offer values each Arcelor share at EUR 40.40.
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