Apr 23 2007
Arcelor Mittal announces today it has finalised on April 20 the acquisition of Sicartsa, a Mexican integrated steel producer, from Grupo Villacero, for an enterprise value of $1,439 million, following all required approvals of the transaction, including by US and Mexican competition authorities. Arcelor Mittal had initially announced this transaction on December 20, 2006.
Sicartsa is a fully integrated producer of long steel, with an annual production capacity of approximately 2.7 million tonnes. Sicartsa has estimated iron ore reserves of 160 million tonnes, providing 30 years of reserves at current production rates. In addition to the full integrated steel making facility at Lázaro Cárdenas, next to Arcelor Mittal's Lázaro Cárdenas works, the acquisition includes Metaver, a mini-mill, Sibasa and Camsa, two rolling mills in Celaya, Guanajuato (Sibasa) and Tultitlán, State of Mexico as well as Border Steel, a mini-mill in Texas, USA.
As announced in December 2006, Arcelor Mittal has also entered into a 50/50 commercial jointventure with Grupo Villacero, active in the distribution and trading of Arcelor Mittal long products in Mexico and in the southwest of the United States, capitalizing on Villacero's commercial network.