Arcelor Strikes Deal for Russia’s Severstal
European steel giant Arcelor, fighting a hostile bid from Mittal Steel Co., said it had reached a deal that would give it a controlling stake in Severstal, Russia’s largest steelmaker, and 1.25 billion euros ($1.59 billion) in cash in exchange for 32% of Luxembourg-based Arcelor.
The combined company would surpass Amsterdam-based Mittal in terms of revenue and production.
Under the deal, Alexei Mordashov, Severstal’s controlling shareholder, would pay Arcelor 1.25 billion euros in cash and give it his stake in all of Severstal’s steel assets and Italian steelmaker Lucchini.
In exchange, Mordashov would own 32% of the enlarged Arcelor group.
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