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ArcelorMittal Completes Laser Welding Deal with Noble International
09/04/2007 - ArcelorMittal and Noble International complete the transaction to combine their laser-welded tailored blanks businesses in an approximately US$300-million deal involving eight production facilities in western and eastern Europe, China, India and the U.S., plus interest in two joint ventures in Asia.
ArcelorMittal and Noble International, Ltd. have completed the transaction to combine their laser-welded tailored blanks businesses.
In exchange for its laser-welded blanks business in western and eastern Europe, China, India and United States, ArcelorMittal will receive consideration of approximately US$300 million. ArcelorMittal’s payment will consist of approximately $131,250,000 in a combination of cash, a Noble note and assumption of certain financial obligations, and 9,375,000 shares of Noble common stock.
As part of the transaction, Noble acquired eight production facilities, including one facility in the United States, plus interest in two joint ventures in Asia. Noble now operates 23 production facilities worldwide, and will have access to ArcelorMittal’s automotive-related research and development efforts.
In addition, the two companies have entered into a transition services and steel supply agreement to support the company’s European operations.
“The completion of this transaction is great news for both businesses,” said Michel Wurth, Member of the ArcelorMittal Group Management Board. “The combination of our leading position in Europe with Noble's leading position in the US will create a truly global business, for the benefit of our global automotive customers.”
ArcelorMittal will be the largest stockholder of Noble, owning approximately 40% of the issued and outstanding common shares. ArcelorMittal will also obtain four of the nine seats on Noble's board of directors.
ArcelorMittal is the world's largest steel company, with 320,000 employees in more than 60 countries. The company leads a number of major global markets, including automotive, construction, household appliances and packaging, with leading R&D and technology, as well as sizeable captive supplies of raw materials and outstanding distribution networks. An industrial presence in 27 European, Asian, African and American countries exposes the company to all the key steel markets, from emerging to mature, positions it will be looking to develop in the high-growth Chinese and Indian markets.
ArcelorMittal’s key pro-forma financials for 2006 show combined revenues of USD 88.6 billions, with a crude steel production of 118 million tonnes, representing around 10% of world steel output.
