Ispat International is to acquire LNM Holdings and to merge with International Steel Group in a deal that will form the world’s largest steel company.
Ispat International presently operates in 6 countries in North America and Western Europe, including the US, has annual total raw steel production capacity of over 18 million tons and is targeting 2004 revenues of approximately $8.3 billion.
Following completion of the deals, the new company – to be named Mittal Steel – will have revenues of $30 billion and an annual production capacity of 70 million tons.
‘In recent years, the steel industry has been characterised predominantly by regional consolidation. This combination represents a significant step forward in the globalisation of the industry,’ said Lakshmi N. Mittal, who will become chairman and chief executive officer of Mittal Steel.
LNM Holdings itself is one of the world’s largest steel companies and also has substantial mining assets. Revenues were $9.9 billion and operating income was $3.2 billion in the first nine months of 2004. The company has annual total raw steel production capacity of over 32 million tons and owns significant mining assets, annually producing approximately 18 million metric tonnes of iron ore, 13 million metric tonnes of coke and 12 million metric tonnes of coal.
International Steel Group is one of the largest integrated steel producers in North America and among the top ten globally. It produces a variety of steel products including hot-rolled, cold-rolled and coated sheets, tin mill products, carbon and alloy plates, wire rod and rail products and semi-finished shapes. Since being formed in April 2002, it has grown by acquiring the steel making assets of LTV, Acme Steel, Bethlehem Steel, Weirton Steel and Georgetown.