Mittal Steel set to complete Arcelor takeover

Mittal Steel Company NV, which acquired Luxembourg's Arcelor SA for $38.3 billion last year, said on Thursday it would complete the transaction in a two-step merger this year.

According to a merger agreement signed on Wednesday, Mittal Steel would merge into an ad hoc subsidiary -- Arcelor Mittal -- subject to approval of shareholders.

The share swap ratio for the exercise has been fixed at 1:1. The two companies would soon submit documents relating to the merger to the relevant securities regulatory authorities, Arcelor Mittal said in a

statement.

In the second step, Arcelor Mittal will be merged into Arcelor and the new entity would be known as Arcelor Mittal.

"The exchange ratio of Arcelor Mittal shares for Arcelor shares has not yet been determined. It will be announced once approved by the boards of directors of the two companies.

"The companies are actively working to implement the two mergers as promptly as possible in the course of 2007," the statement said.

The Mittal Steel-Arcelor saga