As part of Mittal Steel's commitments to the European Commission during the recommended merger of Arcelor S.A and Mittal Steel N.V., Arcelor Mittal has announced today the agreed sale of Travi e Profilati di Pallanzeno and San Zeno Acciai to Duferco for an enterprise value of 117 million euros (approx. U.S. $155 million).
Travi e Profilati di Pallanzeno (TPP), which is a subsidiary of Arcelor, is a rolling mill located close to the Lago Maggiore in Northern Italy. In 2006 the company is expected to generate a turnover of more than 190 million euros (approx. $250 million) for an annual production of approximately 500 kt of long carbon steel products.
Following Mittal Steel's bid for Arcelor earlier this year, the European Commission identified competition concerns in relation to sections. In response, the company committed itself to the disposal of three European medium/heavy section mills: Arcelor's Stahlwerk Thüringen and Travi e Profilati di Pallanzeno (Italy), as well as Mittal Steel's section and bar mill Huta Bankowa (Poland). The divestment process for the latter is well engaged. An agreement for the sale of Stahlwerk Thüringen was announced on Dec. 6, 2006.
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