June 26, 2006
Mittal Steel Company NV today announced that it has reached an agreement with Arcelor to combine the two companies in a merger of equals to create what the company says will be the world's leading steel company. Mittal Steel's revised offer reportedly is worth 25.6 billion euros ($32.2 billion). The terms of the transaction, which will be effected by way of a tender offer by Mittal Steel for Arcelor shares, have been reviewed by the Arcelor Board, which is recommending the transaction to Arcelor shareholders.
The combined group, to be domiciled and headquartered in Luxembourg, will be named Arcelor Mittal.
Following completion of the transaction and assuming a 100 percent acceptance rate of the tender offer by Arcelor shareholders, current Arcelor shareholders will own collectively 50.5 percent of the combined group. The Mittal family will own 43.6 percent of the capital and voting rights of the combined group.
Announcing the news, Mittal Steel said that Arcelor Mittal will have a unique profile with unprecedented scale, scope, and synergies:
It is expected that, as a result of the amendment to the terms of the offer, the closing date for the tender offer, currently scheduled for July 5th, will be postponed by a few days. The new date for the closing of the tender offer will be communicated to the market after approval by the relevant market authorities.
More information can be found here.