The world's largest steelmaker ArcelorMittal and the Miglani family of India won European Union regulatory approval on December 1, for their joint takeover of Indian steelmaker Uttam Galva Steels Ltd, a leading producer of cold rolled steel, galvanized products, and color coated coils and sheets based in Western India, reports Reuters.
As SteelOrbis previously reported, ArcelorMittal Netherlands BV, a unit of Luxembourg-based steel giant ArcelorMittal, had announced an offer for a 29.4 percent stake in the Indian company in early September, which would increase its parent's stake in Uttam to 35 percent.
As part of the deal, the Miglani family, which controls Uttam, will sell part of its controlling stake to ArcelorMittal. The steel company will then make a public offer to acquire additional shares.
"The proposed concentration would not give rise to any competition concerns given Uttam Galva Steels' limited export of small amounts of steel to the European economic area," the Commission, the EU's competition watchdog, said in a statement.
Top global steelmakers are keen to expand into India, which together with China is seen as a strong growth area fueled by infrastructure building and recovering car sales.