Arcelor agrees to merger deal with Mittal Steel

LUXEMBOURG, June 25 (Reuters) European steel maker Arcelor has agreed to a 100 percent takeover bid made by world sector leader Mittal Steel , creating a global steel giant that will dwarf its rivals, its chairman said on Sunday.

''At the end, it was decided unanimously by the Arcelor board that (it will) recommend the new offer of Mittal Steel,'' Joseph Kinsch told reporters, adding that Mittal's improved offer was a 10 percent premium over the one it had previously submitted.

''We concluded that Mittal Steel's was a better offer than that of Severstal,'' he added.

The new company would be called Arcelor Mittal, he said.

REUTERS SK BST0041