London, Mar 18: World's largest steel maker Arcelor Mittal said it will combine its laser-welded tailored blanks businesses, TBA, spread across India, China, western and eastern Europe and United States, with that of North America's largest laser-welded steel products producer Noble International, for 300 million dollars.
The two companies have entered into a definitive agreement for the purpose.
TBA is a leading European manufacturer of tailored blanks. Its business includes eight plants in Europe, one plant in the United States, a 25 per cent joint venture in China and a 50 per cent joint venture in India. It employs about 670 people. Its total revenues inm 2006 stood at 540 million dollars.
The 300-million-dollar consideration will be partly in cash and consist of certain TBA financial obligations and 9.3 million shares of Noble at an agreed value of 18 dollars per share.
Upon completion, Arcelor Mittal will become the largest stockholder of Noble, owning nearly 40 per cent of the issued and outstanding common shares. Arcelor will also obtain four of nine seats on Noble's board of directors.
Completion of the transaction is expected to occur in June.
'The signing of the agreement for this transaction is great news for both businesses. The combination of our leading position in Europe with Noble's leading position in the US will create a truly global business, for the benefit of our global automotive customers,'' Mr Michel Wurth, Member of the Arcelor Mittal Group Management Board said.
The deal is, however, subject to a number of conditions, including Noble shareholder approval, receipt by Noble of not less than 165 million dollars in debt financing, anti-monopoly clearances in the United States, Canada and Europe and other customary conditions.
''Arcelor and Noble will seek to include in the transaction as soon as practicable the tailored blank business operated by Powerlasers, a unit of Dofasco, that Arcelor acquired in early 2006 for about 50 million dollars,'' an Arcleor statement said.
Noble operates 12 production facilities in the United States, Canada, Mexico and Australia, and employs more than 2,000 people.
Noble's estimated pro forma 2006 revenue is approximately 0 million, with EBITDA of million.
UNI
The two companies have entered into a definitive agreement for the purpose.
TBA is a leading European manufacturer of tailored blanks. Its business includes eight plants in Europe, one plant in the United States, a 25 per cent joint venture in China and a 50 per cent joint venture in India. It employs about 670 people. Its total revenues inm 2006 stood at 540 million dollars.
The 300-million-dollar consideration will be partly in cash and consist of certain TBA financial obligations and 9.3 million shares of Noble at an agreed value of 18 dollars per share.
Upon completion, Arcelor Mittal will become the largest stockholder of Noble, owning nearly 40 per cent of the issued and outstanding common shares. Arcelor will also obtain four of nine seats on Noble's board of directors.
Completion of the transaction is expected to occur in June.
'The signing of the agreement for this transaction is great news for both businesses. The combination of our leading position in Europe with Noble's leading position in the US will create a truly global business, for the benefit of our global automotive customers,'' Mr Michel Wurth, Member of the Arcelor Mittal Group Management Board said.
The deal is, however, subject to a number of conditions, including Noble shareholder approval, receipt by Noble of not less than 165 million dollars in debt financing, anti-monopoly clearances in the United States, Canada and Europe and other customary conditions.
''Arcelor and Noble will seek to include in the transaction as soon as practicable the tailored blank business operated by Powerlasers, a unit of Dofasco, that Arcelor acquired in early 2006 for about 50 million dollars,'' an Arcleor statement said.
Noble operates 12 production facilities in the United States, Canada, Mexico and Australia, and employs more than 2,000 people.
Noble's estimated pro forma 2006 revenue is approximately 0 million, with EBITDA of million.
UNI
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