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Mittal shareholders approve first part of Arcelor merger in Amsterdam

Mittal shareholders approve first part of Arcelor merger in Amsterdam

Shareholders of Mittal Steel Co. NV overwhelmingly approved the first phase of the company's euro30 billion (US$41 billion) merger with Arcelor SA, the companies said Tuesday.
As expected, shareholders of the family controlled company voted by a margin of 98.8 percent in favor of merging Mittal with a wholly owned subsidiary, ArcelorMittal NV. The deal will close Sept. 3 and Mittal shareholders will receive 1 share of ArcelorMittal for each share of Mittal they now hold.
Details of how Luxembourg-based Arcelor SA will join ArcelorMittal to create the world's largest steel company are still pending.
"ArcelorMittal and Arcelor currently expect to publish details concerning their merger ... before the end of September 2007," the companies said.
Arcelor shareholders have not yet formally approved the merger, though more than 90 percent tendered their shares to Mittal's August 2006 offer of 11 ArcelorMittal shares for seven Arcelor shares. The companies are already largely operating as one out of a headquarters in Luxembourg.
ArcelorMittal will be the world's largest steel company, with production estimated at about 10 percent of global output.
Mittal's acquisition of Arcelor has had a rocky road toward completion as U.S. regulators ordered Mittal to sell off one of its major American steel plants and the Brazilian market watchdog forced it to spend up to euro4 billion (US$5.43 billion) to buy out Arcelor's Latin American steel units.
On Monday, Dutch and French courts rejected suits from holdout shareholders attempting to block the deal after Mittal made a reduced "squeeze-out" offer to them to reflect a rise in the companies' share prices in the intervening time.
The shareholders haven't ruled out pursuing their protests further in Luxembourg courts.
ArcelorMittal shares were down 2.7 percent at euro45.41 (US$62.05).


Updated : 2021-06-14 02:14 GMT+08:00