Arcelor Mittal buys Sicartsa for Rs 6,006 cr

The world's largest steel manufacturer, Arcelor Mittal, has received approval from the US and Mexican competition authorities to acquire Sicartsa from Grupo Villacero for an enterprise value of $1.43 billion (about Rs 6,006 crore).

"The acquisition of the Mexican integrated steel producer was finalised following all required approvals of the transaction including sanctions by the US and Mexican Competition Authorities," Arcelor Mittal said in a release.

Arcelor Mittal had initially announced the transaction on December 20, 2006. Sicartsa is a fully integrated producer of long steel, with an annual production capacity of about 2.7 million tones and estimated iron ore reserves of 160 million tonnes.

The acquisition includes Sicartsa's manufacturing facility at Lazaro Cardenas, two mini mills and two rolling mills, it added.

Arcelor Mittal has also entered into a 50-50 commercial joint venture with Grupo Villacero to utilise the latter's network for distribution and trading of its own products in Mexico and in the Southwest of United States.