Arcelor Mittal Combines Blanks Business with Noble
Oct 27, 2006
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Arcelor Mittal and Noble International, Ltd., North America's largest producer of laser-welded steel products, have agreed to combine their laser-welded tailored blanks businesses. Arcelor Mittal is to become the largest stockholder of Noble following the closing of the transaction.
On Oct. 27th, 2006, Noble and Arcelor S.A. signed a binding Letter of intent for the combination of Arcelor's laser-welded tailored blank business (TBA) with Noble. Upon completion of the transaction, Arcelor Mittal would receive approximately U.S. $300 million in a combination of cash and 9,375,000 shares of Noble common stock, and would become Noble's largest stockholder, owning approximately 40 percent of the issued and outstanding common shares.
TBA is a leading European manufacturer of tailored blanks. Its business includes nine plants in Europe, one in the U.S. and a 25 percent joint venture in China. TBA employs about 670 people. TBA's total revenue for 2006 is expected to reach approximately 400 million euros (approx. U.S. $500 million), with EBITDA of approximately 53 million euros (approx. $66 million).
Arcelor Mittal will be incorporated in 2007 following the successful tender offer, bringing together the world's number one and number two steel companies, Arcelor and Mittal Steel.
Noble is North America's largest laser welder with laser-welded flat blanks and laser-welded tubular products solutions for the automotive industry.
Closing of the transaction is expected in March 2007, following satisfactory completion of due diligence by both parties, Noble's financing, and receipt of all required authorizations, including approval by Noble's stockholders and antitrust clearance.
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