European Commission approves Mittal Steel - Arcelor merger
Mittal Steel announced today that the European Commission has cleared its bid to acquire Arcelor subject to certain commitments. The granting of EU antitrust clearance is a further positive and important step towards the successful completion of Mittal's bid, the company said.
"We are delighted with the Commission's decision. For the past several months, we have worked constructively with the Commission— and other regulatory authorities—to demonstrate the pro-competitive impact of the Mittal/Arcelor transaction. Clearly, this decision also recognizes the complementary nature of the combination. The Mittal/Arcelor combination will represent a step-change in the consolidation and long-term health of the global steel industry to the benefit of all stakeholders."
In order to secure clearance during the Commission's Phase I investigation, Mittal Steel agreed to address concerns in what it said is the relatively small area of heavy sections through the divestiture of three steel plants, two belonging to Arcelor and one belonging to Mittal. Mittal Steel believes that the divestitures will have no adverse effect on either company's operations, in light of the combination.