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ArcelorMittal acquires Turkish steel co

ArcelorMittal acquires Turkish steel co
PTI
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First Published: Mon, Sep 10 2007. 03 04 PM IST
Updated: Mon, Sep 10 2007. 03 04 PM IST
Brussels: World’s largest steelmaker, ArcelorMittal has bought a 51% stake in Turkey’s major steel stockholding company, the steel giant announced on 10 September.
The transaction, subject to antitrust authorities approval, is expected to be completed by the end of this year, said Gonzalo Urquijo, member of the Group Management Board of ArcelorMittal.
In his statement Urquijo said that “this acquisition is an important step to meet the strong Turkish demand in all products. The acquisition of this stake in Rozak will allow our steel distribution business in this country to reach its capacity target in 2010.”
Rozak is Turkey’s major steelmaker and specializes in production of sheet and plates at its five plants in Turkey. In 2006, it shipped 450,000 tonnes of steel with a turnover of 260 million euros.
Turkey is one of the fastest growing steel markets in the world with a dynamic construction sector growing at 10% annually.
ArcelorMittal is the world’s number one steel company, with 320,000 employees in more than 60 countries. The company was formed in July 2006 through the merger of Mittal Steel Co. NV and Arcelor SA after a long takeover battle. With a crude steel production of 118 million tonnes, the steelmaker produces about 10% of global steel output.
Headed by an Indian businessman, Laxmi Mittal, ArcelorMittal is a leader in all major global markets, including automotives, construction, household appliances and packaging.
With an industrial presence in European, Asian, African and American countries, the company has access to all the key steel markets. It is looking to develop in the high-growth Chinese and Indian markets.
But Mittal Steel’s Arcelor bid -- estimated at around 30 billion euros -- has been marred by problems. Brazil’s market regulator forced it to spend nearly four billion euro to buy out Arcelor’s Latin American steel units, and recently, the US regulators have ordered it to sell off its major steel plant in Maryland.
On Monday, the company’s shares traded for 45.54 euros per share in the European markets.
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First Published: Mon, Sep 10 2007. 03 04 PM IST