 | « Back to article | Print this article |
A day after pulling off his audacious bid for Arcelor, Mittal Steel Chairman LN Mittal said China and India would form an integral part of Arcelor Mittal's future plans.
"Both the companies want to increase their footprint in China," Mittal said at a globally televised press conference in Luxembourg where the merged company will be headquartered.
Mittal Steel has a joint venture in China, and has plans to set up an integrated steel plant in the state of Jharkhand in India.
Arcelor's shareholders will take up the proposed merger on June 30. Mittal expressed confidence that the shareholders would vote for the agreement, and reject Russian company Severstal's offer for a merger.
Arcelor Chairman Joseph Kinsch, however, clarified that any new bid higher than the Mittal offer would have to be discussed by the Arcelor board.
Mittal, who will initially serve as president of Arcelor Mittal, can take up the position of chairman once the 73-year-old Kinsch retires. Kinsch will also have the option to propose Mittal's successor as president.
Arcelor CEO Guy Dolle has offered to step down, and a new CEO is likely to be announced on June 30. Mittal suggested that Kinsch should propose a replacement candidate.
Mittal's son, Aditya, who is the chief financial officer of Mittal Steel, has turned down an offer to be the chief executive of the new entity. The Mittal family will own 43.6 per cent of the capital and voting rights in Arcelor Mittal. The family has agreed to cap its stake in Arcelor Mittal at 45 per cent.
The management board of the new entity will consist of the present four members of the Arcelor management board and three other members nominated by Mittal Steel's board of directors.
The new company will control nearly 10 per cent of the global steel production.
