The world’s largest steel group Mittal Steel on Monday denied that it would sell its 52% stake in Mittal Steel South Africa as part of the deal to merge with world’s second largest steel maker Arcelor.
“We firmly deny this rumour and it couldn’t be further from the truth,” said Mittal Steel spokesperson Paul Weigh in a statement.
Mittal Steel was committed to South Africa and Mittal Steel South Africa was a flagship subsidiary within the Mittal Steel group, the company said.
On Sunday, Arcelor’s board unanimously recommended Mittal Steel’s improved offer and the proposed creation of Arcelor-Mittal.
A month ago, Russian steel group SeverStal signed a merger agreement with Arcelor.
“In light of this we are very surprised that the board did not invite us to discuss our revised proposal nor offer us an opportunity to respond as we had requested,” SeverStal said in a statement on Sunday.
“We are now reviewing all of our options,” SeverStal added.
In terms of Mittal Steel’s offer, Arcelor shareholders will hold 50,5% of Arcelor-Mittal and Mittal Steel shareholders will hold the remaining 49,5%.
Arcelor-Mittal will have total steel production of about 100-million tonnes or about one twelfth of estimated global steel production of 1,2-billion tonnes.
At 1pm, Mittal Steel South Africa shares on the JSE were quoted at R71,50, unchanged from Friday’s close. – I-Net Bridge