Moscow, May 28 (Reuters): Arcelor and Severstal will consider more acquisitions after uniting to become the supplier of one-fifth of the steel used in the auto industry worldwide, senior officials said.
Russia’s biggest cross-border deal will create the world’s largest and most profitable steel maker, and if approved, would probably thwart a hostile takeover bid for Arcelor by larger rival Mittal Steel.
“We have the legal and technical means to carry out further mergers and takeovers. This could mean buying companies or merging with companies, if it’s in the interest of shareholders,” Severstal owner Alexei Mordashov said.
“We are creating a strong, effective company capable of giving value to its shareholders everywhere in the world. Of course we have real plans to grow,” Mordashov said.
Arcelor unveiled plans to buy Severstal on Friday in a deal giving 40-year-old Mordashov almost a third of the European steel giant’s shares.
Interfax news agency quoted Mordashov as saying he wanted to increase his stake to 45 per cent, but regulatory authorities and the interests of other shareholders precluded him from doing so.