ArcelorMittal (NYSE:MT), the world’s biggest steel company, and Brazilian industrial conglomerate Votorantim plan to combine their long steel operations in the country, the companies confirmed on Thursday.
The merger will result in a producer of long steel products – which are typically used in construction and railways – with annual crude steel production capacity of 5.6mln tonnes.
ArcelorMittal is the largest steelmaker by output, producing around 90mln tonnes last year.
Under the deal, Votorantim Siderurgia will become a subsidiary of ArcelorMittal Brasil.
ArcelorMittal’s Wall Street ADRs were down 4% at $8.74 late on Thursday.
Story by ProactiveInvestors