Brazilian Regulator: Arcelor Mittal Must Boost Offer

Brazilian securities regulator (CVM) has announced that Luxembourg-based Arcelor Mittal must raise its offer to minority shareholders in Brazil in order to close its merger. Last year, Netherlands-based Mittal Steel bought steel company Arcelor Brasil as part of its takeover of rival Luxembourg-based steelmaker Arcelor in a deal worth $37.3 billion. Following the merger, the CVM ruled that Mittal had to offer to buy out minority shareholders of the Brazilian unit, and rejected an appeal by Mittal. The European company offered 33.3 reais per share, well below the 51 reais per share demanded by shareholders. The regulator’s latest ruling suggests a price of 47.9 reais per share and gives a deadline of February 27 for the offer.