ArcelorMittal acquires Argentine steel giant

ArcelorMittal acquires Argentine steel giant

Brussels: Steelmaker ArcelorMittal added another purchase to its South American buying spree on 11 December, acquiring Argentina’s largest steel distributor M T Majdalani y Cia. SA.

It did not say how much it paid for the family-owned company, which sells flat stainless steel products and had a turnover of $46 million (euro31.25 million) last year.

ArcelorMittal, towering over rivals with its control of 10% of world steel output, said Majdalani was highly focused towards its end users and would integrate perfectly within its operation in the region.

The deal will need regulatory approval, ArcelorMittal said.

Demand for steel is growing in Latin America as economies there expand, calling for more steel to construct buildings, machines and cars, just as Europe and North America face weaker growth and tougher competition from Asian imports.

As part of its plans to increase global shipments by a fifth by 2012, ArcelorMittal will spend $5 billion (euro3.4 billion) ramping up production in Brazil over the next five years.

It is doubling capacity at its main Brazilian plant at Tuburao and will build new galvanizing facilities in Vega do Sul.

This adds to a string of acquisitions made this year. In October, ArcelorMittal paid USD 542 million (euro380 million) to buy a third of Argentine steel company Acindar that it did not already own. And last week ArcelorMittal said it would spend up to USD 1.75 billion (euro1.19 billion) to buy out Brazilian specialty steel unit ArcelorMittal Inox Brasil SA, formerly known as Acesita.