MercoPress. South Atlantic News Agency

India's Mittal takes leading control of Argentine steel industry

ArcelorMittal the world's largest steel group announced plans to offer 542 million US dollars to take over Argentina's Acindar and increase its presence in Latinamerica.

ArcelorMittal said it would offer 1.82 US dollars per Acindar share, a 19.5% premium to Acindar's closing stock price on Monday. The operation would enable the Indian corporation to take control of the remaining 34.7% it does possess. Acindar shares in Buenos Aires Stock market rose as high as 5.50 pesos valuing the potential transaction in 542.4 million US dollars. The offer by ArcelorMittal subsidiary ArcelorMittal Spain should commence within four months, subject to regulatory approval. The offer would be conditional on the majority of shares not owned by ArcelorMittal being tendered, and ArcelorMittal eventually holding 90% of the outstanding Acindar shares. ArcelorMittal, formed when global sector leader Mittal Steel took over Arcelor last year, said it currently owns a 65.3% stake in Acindar. "The offer is designed to help ArcelorMittal strengthen its position in Argentina and reinforce its commitment to enhancing its business in the country" said Lakshmi Mittal. For Acindar, in the process of completing a 150 million US dollars capital programme to raise capacity to 1.7 million tons, the deal would assist its investment plans. ArcelorMittal is the association of Mittal Steel Co. NV and Arcelor SA which also controls Brazil's Belgo Mineira that already controls a majority stake in Acindar. Lakshmi Mittal added that "Latinamerica is a very important steel market with a significant growth potential, in a region in full expansion". "Our offer for Acindar emphasizes our commitment to the region and determination to expand our investments in Argentina", he underlined. ArcelorMittal controls 10% of world steel production and is rapidly expanding in Latinamerica, Asia and Eastern Europe.