The acquisition is likely to deliver significant strategic benefits to ArcelorMittal, by expanding its position in the high-growth Brazilian steel industry.
SEATTLE (Scrap Monster): Luxembourg-based leading steelmaker ArcelorMittal announced that it has signed an agreement towards acquisition of Brazil-based slab producer Companhia Siderurgica do Pecem (CSP). The transaction, valued at $2.2 billion is subject to corporate and regulatory approvals and is expected to be completed before the end of the current year.
The acquisition is likely to deliver significant strategic benefits to ArcelorMittal, by expanding its position in the high-growth Brazilian steel industry. It will add 3 million tonnes of high-quality and cost-competitive slab capacity. In addition, it also allows for further expansions, including the option to add primary steelmaking capacity and rolling and finishing capacity.
Commenting on the transaction, Adiya Mittal, CEO, ArcelorMittal said that the deal marks the acquisition of a modern, efficient, established and profitable business, which will add immediate value to the company and enhance its position in Brazil. The acquisition also presents medium-to-long-term potentials to become an intra-group slab supplier and add significant rolling and finishing capabilities.
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