Chinese steelmaker Laiwu Steel Group agrees to sell to Arcelor 38.41% stake in Laiwu Steel Corporation, a listed subsidiary of Laiwu Steel Group., Ltd.

Under the terms of the share purchase agreement, Arcelor will acquire 354,236,546 legal person shares from Laiwu Steel Group., Ltd. at a price of RMB 5.888 per share for a total consideration of RMB 2.085.760.530,86. The all cash consideration is subject to adjustment based on the net asset value at a date close to the closing of the transaction.

At the signing ceremony in Jinan, province of Shandong, Arcelor Senior Executive Vice-President Roland Junck said: “This move comes as a result of Arcelor’s global long term growth strategy. This partnership with Laiwu gives us an opportunity to contribute to the tremendous development potential of China; the world’s largest and fastest growing steel market. The investment in Laiwu Steel Corporation will become a key operational platform to better serve our Chinese customers.

Laiwu Steel Group., Ltd. Vice president Zhao Yanbin said: “This transaction will deliver synergies and offer future opportunities that we expect to further enhance the long-term competitiveness and shareholder value of Laiwu Steel Corporation”.

Laiwu Steel Corporation will benefit from the technology and innovation leadership, powerful sourcing and extensive global commercial network of Arcelor to further boost its operational excellence. Laiwu Steel Corporation will for instance gain access to Arcelor’s product and process technology as well as to its expertise in environmental protection and management systems. With the addition of its recently commissioned heavy section mill, Laiwu Steel Corporation is China’s largest producer of sections and beams.

Closing of the transaction is subject to the regulatory and governmental approvals and waivers of the competent authorities in the Peoples Republic of China.

About Laiwu Steel Corporation
For the nine months until September 30, 2005, Laiwu Steel Corporation’s main business revenue reached RMB 14.078 billion. The company is rewarded as one of “Top Ten Listed Companies with Highest Dividend” in the first survey of “Top 10 Most Competitive and Convincing Listed Companies in China” in 2005.

About Laiwu Steel Group., Ltd.
Active in the production of long and flat carbon steel products, Laiwu Steel Group., Ltd. employs a total of 41,000 associates. In 2005, the Group produced over 10 million tons of steel, its turnover is RMB 39.14 billion.


Reactie XEA.nl,
Dit soort deal kunnen de deur voor Mittal dicht doen, waar andere weer open kunnen gaan. Dan bedoelen wij (red. XEA.nl) dat Mittal Steel dan naar andere bedrijven gaat zoeken voor samengaan. Toch vinden wij het vreemd dat onze "vriend" de Rus Usmanov zo stil is, of is hij op vakantie?