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ArcelorMittal to Acquire Remaining Shares in ArcelorMittal Poland
07/27/2007 - ArcelorMittal reaches agreement with the Polish Government to acquire the outstanding 25.2% shares of ArcelorMittal Poland currently held by the Polish State and Treasury Ministry at a share price of PLN 6.5.
ArcelorMittal has reached an agreement with the Polish Government to acquire the outstanding 25.2% shares of ArcelorMittal Poland currently held by the Polish State and Treasury Ministry. Each share will be acquired at a price of PLN 6.5, valuing the remaining 25.2% of shares at approximately PLN 436 million (approximately US $157 million).
“I am delighted that we have reached an agreement with the Government to acquire the remaining 25.2% shares of ArcelorMittal Poland,” said Mr. Michel Wurth, Member of the Group Management Board with responsibility for Flat Products Europe. “Under ArcelorMittal’s ownership, the performance of the Polish operations have improved considerably. Poland’s economy is continuing to post strong growth and we are confident about the long-term prospects for the company.
When ArcelorMittal initially acquired 69% of the Polish company in March 2004, it also received an option to purchase a further 25% from the State Treasury at a date in the future. ArcelorMittal also agreed to an investment commitment of some PLN 2.4 billion (approximately US $865 million) relating to four major projects. This investment has now been implemented in full, with the largest single project—the construction of a new hot strip mill—commissioned earlier in June and formally inaugurated in Cracow in late July.
“Following the completion of the four major investment programs, ArcelorMittal Poland boasts some of the most technologically advanced steel-making facilities in the world and is now capable of producing the highest quality products for the most sophisticated applications in all steel consuming markets,” said Mr. Wurth.
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 billion, with a crude steel production of 118 million tonnes, representing around 10% of world steel output.
