Mittal Steel announces acquisitions
Mittal Steel Company N.V., a global steel producer, announced Nov. 25 that it has completed its acquisition of 93.02 percent of Kryvorizhstal.
Under the terms of the share purchase agreement, 3,590,038,755 shares have been transferred to Mittal Steel for a total consideration of UAH 24.2 billion (US$4.84 billion). The transaction was financed out of Mittal Steel's own cash resources and credit lines.
Kryvorizhstal is the largest carbon steel long products producer in the Ukraine and the nearby region with 2004 liquid steel production of 7.7 million tons and 2004 shipments of 6.7 million tons. It also produced 17.1 million tons of iron-ore.
Mittal Steel has taken operational control and has appointed Narendra Chaudhary as CEO of Kryvorizhstal. Chaudhary joined Mittal Steel in 1993 and has more than 40 years of experience in the steel industry in various technical and managerial positions. During his time at Mittal Steel, he has been CEO of both Mittal Steel Galati and Mittal Steel Temirtau. Most recently he was director operations and maintenance, based in London.
Nov. 23, the company announced that its Canadian subsidiary, Mittal Canada Inc., has entered into a definitive agreement with Stelco Inc. of Ontario concerning the acquisition of Norambar Inc., Stelfil Ltee, and Stelwire Ltd. Norambar and Stelfil are located in Quebec, and Stelwire is located in Ontario.
The purchase is subject to a number of conditions and it is anticipated that if all consents and approvals are obtained as planned, the transaction closing will take place in early 2006.