Arcelor to Merge with Severstal
Arcelor SA (Brussels, Belgium; http://www.arcelor.com) reached a deal that would give it a controlling stake in Russian steelmaker Severstal. Under the deal, Severstal's controlling shareholder, Alexei Mordashov, will pay Arcelor 1.25 billion euros ($1.59 billion) in cash and give Arcelor his stake in all of Severstal's steel assets and Italian steelmaker Lucchini SpA, according to an Arcelor statement. In exchange, Mordashov will own 32 percent of the enlarged Arcelor. The transaction is expected to close in July 2006, subject to obtaining regulatory approvals.