• search

Array

Written by: Staff
|

Paris, Mar 2: Mittal Steel said its planned $23 billion takeover of Luxembourg-based rival Arcelor would not lead to any major restructuring, documents published by a French newspaper showed on Thursday.

''Both companies are complementary, therefore generating almost no 'redundancy' in the combined footprint,'' Mittal Steel said in a six-page confidential document reproduced on the website of La Tribune (www.latribune.fr).

''There will be almost no negative impact beyond what the management of Arcelor has already announced in the Apollo Plan and other existing plans.'' Mittal Steel said that the board of directors of the merged entity would have a majority of independent directors, in a move to ease governance issues.

It also reiterated it would consider moving its headquarters to Luxembourg.

Arcelor has been fighting off the bid from Mittal, founded by the world's third-richest man Lakshmi Mittal, while the French and Spanish governments expressed doubts about industrial plans put forward by Mittal Steel earlier this week.

The Luxembourg government, which has a stake of some 4 percent in Arcelor, said on Thursday it had asked Mittal Steel for more detail about its industrial plans for the proposed merger.

In its document, Mittal also reiterated a target for annual synergies of around $1 billion by 2009, $600 million of which from purchasing savings alone.

REUTERS

For Daily Alerts

For Breaking News from Oneindia
Get instant news updates throughout the day.

Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Oneindia sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Oneindia website. However, you can change your cookie settings at any time. Learn more