Steel Giants Laiwu, Arcelor, Mittal Make Power Plays

By Duluth News-Tribune, Minn.

Feb. 25–Laiwu Steel of China has agreed to allow Luxembourg steel giant Arcelor to buy a 38.41 percent stake in its operations, the companies announced Friday.

A Laiwu subsidiary owns 30 percent of United Taconite in Eveleth.

Arcelor will pay about $249 million in the all-cash stock purchase. The transaction is subject to regulatory and government approvals.

Laiwu employs 41,000 workers. It produced more than 10 million tons of steel in 2005.

Arcelor is the second-largest steelmaker in the world. It employs 96,000 people in 60 countries.

Mittal Steel, the world’s largest steelmaker and owner of the Minorca taconite plant in Virginia, has made a hostile bid to acquire Arcelor, according to news reports.

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Copyright (c) 2006, Duluth News-Tribune, Minn.

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