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World's largest steel maker ArcelorMittal on Friday said it has acquired an additional 35 per cent stake in its Argentina-based subsidiary Acindar for about $552 million.
The NRI steel baron Lakshmi Mittal-run company already holds 64.5 per cent stake in Acindar through its subsidiary ArcelorMittal Brasil SA and with the latest acquisition, its holding has increased to 99.5 per cent in the firm. ArcelorMittal said that its cash tender offer for 35.5 per cent of additional stake in Acindar received 98.6 per cent participation.
As of expiration date, the offering has been accepted for shares representing 35 per cent stake in the company, it said in a statement. On February 14, the closing date for the offer, ArcelorMittal would pay to the shareholders of Acindar $552 million for the tendered shares.
"I am very pleased that we have received such a positive response from shareholders to our offer. Acindar, as part of the ArcelorMittal Group, will have additional opportunities to benefit from being part of the world's leading steel company We are very committed to our business in Argentina and Latin America and will continue to look for opportunities to further enhance the profile and performance of our assets in this region," the firm's President and Chief Executive Officer Lakshmi Mittal said. JP Morgan acted as lead arranger.