Alexa
  • Directory of Taiwan

ArcelorMittal pays euro376 million (US$499 million) to buy German gas distributor

ArcelorMittal pays euro376 million (US$499 million) to buy German gas distributor

Steelmaker ArcelorMittal will buy most of German gas distributor Saar Ferngas AG from coal miner RAG AG for euro367 million (US$499 million), the companies said Friday.
ArcelorMittal said the purchase of 76.88 percent of the largest gas supplier in the German states of Saarland and Rhineland-Palatinate would fit well with its energy network in the region.
It owns a 20-percent stake in Luxembourg gas distributor Soteg, and the new deal will allow it increase that control because Saar Ferngas owns 10 percent of Soteg.
Saar Ferngas pipes gas to city electricity plants and industrial plants and power stations. A fifth of it is owned by E.On AG, while German public authorities own another 3.12 percent.
For RAG, formerly Ruhrkohle AG, the sell off allows it refocus on generating electricity from coal and renewable energies, according to RAG chief executive Werner Mueller.
It also ends a headache over offloading the unit, after German antitrust regulators prohibited local energy giant RWE AG from buying Saar Ferngas in March. ArcelorMittal will acquire the shares under the same conditions agreed with RWE, the companies said.
Saar, which has 150 employees, operates a gas pipeline network spanning 1,684 kilometers (1,046 miles), and generated sales of euro1.49 billion in the fiscal year 2006.
The deal still needs approval from ArcelorMittal's board and EU antitrust authorities, but it should be completed by the end of 2007.
ArcelorMittal is still being formed, as Luxembourg's Arcelor SA and Dutch-based Mittal Steel Co. NV combine to form the world's largest steel company, which will control 10 percent of global output.
Steelmaking uses large amounts of energy to heat furnaces to high temperatures, traditionally using coal. ArcelorMittal executives have sounded worries about how EU environmental legislation to limit greenhouse gas emissions will affect the steel industry in Western Europe as rules discriminate against polluting coal.


Updated : 2021-05-12 16:48 GMT+08:00