Dofasco sale stalled: Arcelor Mittal

A plan by Arcelor Mittal to sell Canadian steel producer Dofasco to ThyssenKrupp of Germany has hit a stumbling block, the world's biggest steel group said in a statement today.

"Arcelor Mittal has bee informed that the directors of the Strategic Steel Stichting, the Dutch foundation that holds the shares of Dofasco, decided on November 10 not to dissolve the foundation, which would have permitted the sale," the statement said.

Arcelor bought Dofasco in January following a battle with ThyssenKrupp, but Mittal then struck a deal with the German group under which ThyssenKrupp would obtain Dofasco once Mittal had taken over Arcelor.

Arcelor had sought to protect Dofasco by placing it in a separate Dutch trust ahead of its tie-up with Mittal in late June.

Today, the statement said that "the boards of both Mittal Steel and Arcelor had previously requested the directors of the foundation to dissolve the foundation in order to allow the sale of Dofasco.

"Arcelor Mittal is reviewing the situation and will be in contact with the US Department of Justice," it said.