WASHINGTON - Mittal Steel said Friday it had obtained approval from US regulators for its acquisition of US International Steel Group, clearing a major hurdle in the deal to form the world`s largest steel maker.
Mittal Steel and ISG said in a joint statement that a registration statement on its proposed merger lodged with the US Securities and Exchange Commission "has been declared effective as of March 11, 2005. "
ISG and Mittal will each hold special meetings of their shareholders on April 12 to give final approval to the proposed merger, the statement said.
Mittal Steel will become the world leader in terms of steel shipments, far outstripping the current world number one, the European consortium Arcelor, according to its chairman Lakshmi Mittal, the world`s third richest man, according to Forbes magazine.
The group will also be the number one steel group in terms of market capitalization (18.5 billion dollars) ahead of Japan`s Nippon Steel.
Mittal Steel was created from Netherlands-based Ispat International, which acquited LNM Holdings, also based in the Netherlands. Mittal himself is based in London.
The companies have signed a letter of agreement with the United Steelworkers of America and the Independent Steelworkers Union. The current chairman of ISG, Wilbur Ross, will become a member of the board of directors of Mittal Steel.
Mittal Steel will have operations in 14 countries including the United States, Canada, Mexico, France, Germany and eastern Europe and employ 165,000 people.
In 2004, Mittal Steel had revenues of 22.2 billion dollars and steel shipments of 42.1 million tons.
According to Forbes, Indian-born Mittal has a personal net worth of 25 billion dollars, trailing only Microsoft chief Bill Gates (46.5 billion) and US investment guru Warren Buffett (44 billion).
03/11/2005 23:55 GMT