Arcelor Mittal Buys Sicartsa For $1.4 Billion

Luxembourg-based steelmaker Arcelor Mittal has agreed to buy 100% of Sicartsa, a Mexican integrated steel producer, from Grupo Villacero in a deal worth $1.4 billion. Sicartsa has plants in Mexico and Texas. The deal will make Arcelor Mittal the largest steel-producer in Mexico. The two companies will also create a downstream strategic alliance. This is Arcelor Mittal’s first acquisition since the creation of the company earlier this year and it expects the acquisition to “generate $80 million of industrial synergies in addition to a further $50 million from commercial, procurement and selling, general & administrative synergies”. The deal is expected to close in the first quarter of next year.