Steel Giant Arcelor to Merge with Russian Steel Leader
Steel giant Arcelor, of Luxembourg, and Severstal, the largest Russian steel company, announced they have agreed to merge, creating the world's largest steel company in a US$16.6 billion deal.
The combined company will rank among the world's most competitive steelmaking and resource assets in both developed and emerging markets, and will be the only one with leading positions in Brazil and Russia.
The transaction values Arcelor at EUR23 billion (US$29.4 billion), or 44 euros per share, representing a premium of 100% over Arcelor's closing price on Jan. 26, 2006, the day before Mittal Steel announced a hostile bid for the company, and 36.6% over Arcelor's closing price on May 25, 2006.
Together Arcelor and Severstal will have EUR46 billion in sales (US$58.4 ...