Arcelor to complete Brazilian consolidation this year

Arcelor to complete Brazilian consolidation this year

Luxembourg-based steel producer Arcelor is expected to announce, in June, the establishment of a new holding company called Arcelor do Brazil. In line with the consolidation plan, Acesita, Belgo-Mineira, Companhia Siderurgica de Tubarao (CST) and Vega do Sul will merge to form the new holding company by the end of 2005. This consolidation will allow Arcelor to better mange its Brazilian flat, long and stainless steel assets. Acelor currently holds a majority stake in CST, Belgo-Mineira and Vega do Sul. The steel giant intends to acquire a majority stake in Acesita. Arcelor will control a 60% stake in the new holding company, while the remaining 40% will be traded on the Sao Paulo stock exchange.