Mittal Steel gets US SEC nod for merger

Mittal Steel had received the nod from  US regulators for its acquisition of US International Steel Group (ISG), clearing a major hurdle in the deal to form the world's largest steel maker.

The joint statement issued by Mittal Steel and ISG yesterday said that a registration statement on its proposed merger lodged with the US Securities and Exchange Commission "has been declared effective as of March 11, 2005."

Both company with hold special meeting with their shareholders on April 12 to give final approval to the proposed merger, the statement said.

Mittal Steel is to outstrip the European consortium Arcelor to become the world number one in terms of steel shipments, according to its chairman Lakshmi Mittal, the world's third richest man, according to Forbes magazine.

The group will also be the number one steel group in terms of market capitalisation ($18.5 billion) ahead of Japan's Nippon Steel.

The companies have signed a letter of agreement with the United Steelworkers of America and the Independent Steelworkers Union. The current chairman of ISG, Wilbur Ross, will become a member of the board of directors of Mittal Steel.