Ispat International will buy LNM Holdings and International Steel Group Inc., forming the world's largest steel firm in a deal worth a total of $17.8 billion, the company said on Monday.
Ispat said in a statement it would issue $13.3 billion in shares to LNM shareholders to form the new group called Mittal Steel Co.
The new Mittal Steel Co. will then pay $42 per share in cash and stock to International Steel shareholders, or about $4.5 billion, depending on Mittal's share price.
The new combined company will have proforma revenues in 2004 of $30 billion, Ispat said, and an annual production capacity of 70 million tonnes. It will have operations in 14 countries and employ 165,000 people.
"The combined Mittal Steel will be the largest and most global steel company in the world and will be listed on the New York Stock Exchange and Euronext Amsterdam," Ispat said.
"Upon completion of both transactions, Mittal Steel will be ... one of the most profitable steel companies in the world," it added."
