Mittal Steel Company N.V. ("Mittal Steel") today announces that it has received final approval relating to its acquisition of 36.67% of Hunan Valin Steel Tube & Wire Company ("Hunan Valin") for a total consideration of US$338 million.
All conditions precedent have been met and the transaction has now closed. The transfer of shares is expected to take place over the next few days.
Hunan Valin is one of the largest steelmakers in China with annual steel production capacity of 8.5 million tons. It is listed on the Shenzhen Stock Exchange.
Commenting, Lakshmi N. Mittal, Chairman and Chief Executive, Mittal Steel, said:
"This is a key strategic transaction for Mittal Steel as it marks our first step into China, the world’s fastest growing steel market. We are very much looking forward to our collaboration with Hunan Valin, and are confident that we can help the company further improve on its market position by providing marketing, procurement and technological knowledge and expertise."