Mr Lakshmi Mittal told the Belgian government on 19 April that Mittal Steel would retain Arcelor’s stainless steel business for 18 months if it succeeds in acquiring the world’s No 2 steel producer. Arcelor’s stainless subsidiary Ugine & ALZ has two of its principal plants in Belgium – at Charleroi and Genk. Arcelor began a strategic review of its stainless business after the division’s profits fell last year. This is reviewing all options, Steel Business Briefing (SBB) understands, including Ugine & ALZ being sold or spun off as a stand-alone company. But Mittal – which does not currently produce stainless – has said it would halt this review pending a study of whether the business can be turned around, rather than sold. The Belgian government has hired an investment bank to evaluate both Mittal’s takeover bid and Arcelor’s response. The later is understood to have submitted a detailed business plan to the Belgian government earlier this week. The government of Belgium’s Wallonia region owns a 2.4% stake in Arcelor. According to news agency reports that SBB could not immediately confirm, Mittal Steel’s CEO also said he expects to get regulatory approval from the Luxembourg authorities in two weeks’ time to submit its tender offer to Arcelor shareholders. They will then be given 35 days to decide whether to accept.
