The world's largest steel company ArcelorMittal has announced its intention to launch a cash offer worth $542 million to acquire 34.7 percent of shares in Argentina-based longs producer Acindar. ArcelorMittal currently owns the other 65.3 percent of Acindar's shares.
In its statement on the issue, ArcelorMittal said that the offer in question is designed to help the company strengthen its position in Argentina and reinforce its commitment to enhancing its business in the country.
The company also stated that the transaction is strategically beneficial to Acindar as it will become core to ArcelorMittal´s long products strategy, acting as a platform for growth and for further opportunities in Latin America.
Commenting on the transaction, ArcelorMittal's CEO and President Lakshmi N. Mittal said, "Latin America is a very important steel market with great potential for further growth and one which we have identified as a key region for expansion. This tender offer for Acindar underlines our commitment to the region and demonstrates our desire to strengthen our investment in Argentina."