Arcelor Mittal SA today said it was merging a unit that makes steel for the auto industry with US laser welder Noble International In return for a 40% stake in the business and a $300 million payment.The Luxembourg-based steelmaker - currently being formed from a tie-up between Arcelor SA and Mittal Steel - said it would become Noble's largest stockholder when the deal was complete.Arcelor Mittal said this would strengthen the company's position with the global car industry. The transaction will combine Arcelor's laser-welded tailored blank business TBA - the largest in Europe - with Noble, North America's largest producer of laser-welded steel products.Mittal has significant US operations through its earlier acquisition of International Steel Group.Combining expected results for this year, the combined Arcelor-Noble business would have a revenue of $1.1 billion and earnings before interest, taxes, depreciation and amortization, or EBITDA, of $122 million.The Arcelor unit employs 670 people at nine plants in Europe, one in the US and a quarter stake in a joint venture in China. The company said its revenue would be around $500 million this year.Noble, based in Warren, Michigan, has more than 2,000 workers at 12 plants in the US, Canada, Mexico and Australia. It expects 2006 revenue to hit $600 million. Earlier this month, it bought Pullman Industries, which makes steel tubular parts for carmakers.Arcelor Mittal said the deal should close in March 2007 after it wins approval from Noble's stockholders and antitrust regulators.
