Arcelor Mittal, CVM Agree Terms

After protracted negotiations stretching over the best part of a year, leading steel group Arcelor Mittal has agreed terms with Brazilian securities regulator CVM for its buyout of local shareholders. The regulator announced earlier this year that the Luxembourg-based company had to 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. The European company offered 33.3 reais per share, well below the 51 reais per share demanded by shareholders. CVM had initially demanded a price of 47.9 reais per share in February but later accepted an offer from Arcelor Mittal of 11.70 reais per share in cash and 0.3568 of its own A shares, in total worth 51.27 reais a share, according to the company.