Arcelor increases its shares in CST

Arcelor increases its shares in CST

According to recent news in the market, Luxembourg based steel producer Arcelor has recently signed an agreement with Brazilian iron ore giant Companhia Vale do Rio Doce (CVRD) to increase its shares in Companhia Siderurgica de Tubarao (CST). In line with the agreement, Arcelor will pay $578.5 million to increase its share in CST from 28.02% to 61.77%. Arcelor CEO Guy Dolle stated that CST is one of the lowest-cost producers of carbon steel that is used in automotive, shipbuilding and construction. Arcelor is expected to complete the deal in the second half of 2005.