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ArcelorMittal to Buy Saar Ferngas from RAG
09/04/2007 - ArcelorMittal signs agreement with RAG Beteiligungs-AG for the acquisition of RAG’s 76.88% stake in Saar Ferngas AG, the largest gas distribution company in Saarland and Rhineland-Palatinate.
ArcelorMittal has signed an agreement with RAG Beteiligungs-AG, Essen, for the acquisition of the 76.88% stake in Saar Ferngas AG, Saarbrücken that is directly held by RAG.
“Saar Ferngas is an opportunity that fits well with our regional energy network,” said Michel Wurth, Member of ArcelorMittal's Group Management Board with responsibility for Flat Products Europe. “This acquisition offers excellent prospects and local synergies with the existing 20% stake of ArcelorMittal in Soteg, the Luxembourg gas distribution company in which Saar Ferngas holds another 10%”
The purchase price for the acquisition comes to approximately euro367 million, and the transaction is to be completed by the end of 2007. Arcelor Luxembourg SA will acquire the shares under the same conditions that had previously been agreed with the RWE Group. The German Federal Cartel Office denied the takeover of Saar Ferngas by RWE in March 2007.
“The sale of the gas distribution unit is a systematic step in the realignment of RAG Beteiligungs-AG,” announced Dr. Werner Müller, Chief Executive Officer of RAG Aktiengesellschaft and RAG Beteiligungs-AG. “This completes the refocusing of the Energy Business Area in particular to power generation from coal-fired power stations and renewable energies.”
The sale is subject to board approval as well as the approval of European antitrust authorities.
Saar Ferngas AG is the largest gas distribution company in Saarland and Rhineland-Palatinate. E.ON AG holds 20% of the shares in Saar Ferngas while various municipalities hold another 3.12%. The Group, which employs approximately 150, supplies natural gas to municipal power utilities, industrial plants and power stations. As a subsidiary of Saar Ferngas AG, Saar Ferngas Transport GmbH operates a natural-gas pipeline network totaling 1684 kilometers. In fiscal year 2006, Saar Ferngas generated sales of euro1.492 billion with EBIT of euro50 million in the areas of trade and shareholdings in other entities. The supply area of Saar Ferngas primarily encompasses large areas of Rhineland-Palatinate and Saarland. With 23 shareholdings in other entities, Saar Ferngas is also active nationally and internationally.
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.
