ArcelorMittal Receives Regulatory Approvals to Acquire Baffinland Iron Mines
12/14/2010 - ArcelorMittal received a "no action" letter from the Commissioner of Competition under the Competition Act (Canada) confirming that it does not intend to challenge ArcelorMittal’s acquisition of Baffinland. There are no further conditions outstanding with respect to regulatory approvals.
ArcelorMittal received a "no action" letter from the Commissioner of Competition under the Competition Act (Canada) confirming that the Commissioner of Competition does not intend to challenge ArcelorMittal’s acquisition of Baffinland.
ArcelorMittal’s offer was to acquire all of Baffinland's outstanding common shares and all outstanding Baffinland common share purchase warrants governed by the warrant indenture dated January 31, 2007, and waiving the notification requirement with respect to the transaction. This constitutes compliance with the requirements for Competition Act approval under the offer.
ArcelorMittal also confirmed that it has previously received notification from Industry Canada that the offer is not subject to review under the Investment Canada Act and has confirmed that no notification or approval in connection with the offer is required under the Canada Transportation Act. There are no further conditions outstanding with respect to regulatory approvals, the company says.
Under the terms of the offer, holders of common shares will receive C$1.10 in cash for each common share, and holders of 2007 warrants will receive C$0.10 in cash per 2007 warrant. The board of directors of Baffinland has approved the offer and unanimously recommends that Baffinland’s security holders tender their common shares and 2007 warrants to the offer.
The offer remains open for acceptance until 11:59 p.m. (Toronto time) on December 20, 2010, unless withdrawn or extended by ArcelorMittal.
ArcelorMittal is the world's leading steel company, with operations in more than 60 countries. It is the leader in all major global steel 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. With an industrial presence in more than 20 countries spanning four continents, the company covers all of the key steel markets, from emerging to mature. In 2009, ArcelorMittal had crude steel production of 73.2 million tonnes, representing approximately 8% of world steel output.