Two of the world’s steel companies, Arcelor SA and Mittal Steel Co. have been in negotiations recently about a “marriage” of the two companies. Mittal’s initial offer was $26 billion for Arcelor has executives of both companies agreeable.
Rival company Severstal also made an offer for Arcelor; Arcelor though choose to stick This merging of the two companies means that together now, they will control almost 10% of the worlds crude steel production.
Now that the terms of this “marriage” of companies have been discussed, the deal will be voted on by Arcelor shareholders. There is still the possibility that shareholder will make exuctives consider Severstal’s offer, but Mittal representatives say they are still confident.
Right now many are concerned about the financial stability of Mittal after the acquisition. And though Mittal, president of the new company, was questioned about the debt situation facing the company, he maintains that the company is in a strong financial situation. ■
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