Mittal Steel raises bid for Arcelor acquisition

Mittal Steel raises bid for Arcelor acquisition

Mittal Steel is trying hard to win the confidence of the investors in the Arcelor as they aim to acquire the second largest Steel Company in the world.

The company has now raised its offer by a third and dropped a key demand for family control over the combined global steel giant.

Mittal Steel has now boosted its total value on Friday by 6 billion euros to above 24 billion euros. This news resulted in a major boost for the Arcelor’s share in the market. Arcelor has said that they won’t be able to comment on this new offer before a board meeting planned for Sunday.

The move came after their earlier bid fell more than 10 percent behind the market value of Arcelor. Arcelor had recently announced a buyback of its own shares at above-market prices to thwart the acquisition offer from Mittal Steel.

Mittal Steel is aiming to create a group capable of producing 100 million tonnes of steel per year — more than three times the size of its closest rival.