Arcelor
Mittal acquires Mexican steel company
Brussels: The world's largest steelmaker, Arcelor
Mittal plans to acquire integrated steel producer Sicartsa
in Mexico from Grupo Villacero for $1.439 billion. The
two companies will also create a 50-50 distribution and
trading joint venture in Mexico and the southern United
States, Arcelor Mittal said in a statement on Wednesday
issued in Rotterdam and Luxembourg.
Arcelor
Mittal said it expected the acquisition to generate $80
million of industrial synergies and a further $50 million
in synergies from commercial, procurement and selling,
general and administrative activities.
He
said the Mexican market expected to grow by up to 6 percent
per year over the next 10 years this is the ideal time
to expand our presence in this country.
Sicartsa
is a fully integrated producer of long steel, with an
annual production capacity of approximately 2.7 million
tonnes from its facilities in Mexico and Texas.
Mittal
Steel Lazaro Cardenas is Mexico's largest steel producer
and slab exporter, with a plant capacity of 4 million
tonnes per year. It shares its production site with Sicartsa.
The site operated as one prior to privatisation in 1991.
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NYSE
shareholders support Euronext deal
New York: The New York Stock Exchange's shareholders
have approved the planned $14.3 billion acquisition of
the Paris-based Euronext NV. The deal is expected to create
the first trans-Atlantic securities market and set the
stage for further expansion.
The
purchase of the European exchange operator is set to be
completed during the first quarter of 2007 after getting
regulatory approval. The deal is seen as a prelude to
an era of cross-border exchanges trading stocks, options
and other financial products on a global scale.
The
NYSE vote came a day after it was overwhelmingly approved
by the European exchange's shareholders. However the deal
needs final approval from European market regulators and
the Dutch Finance Ministry, as well as the Securities
and Exchange Commission and French authorities.
The
SEC and Euronext's five European regulators have already
given tentative approval.
NYSE
shares fell $1.17 to $102.19 in morning trading on the
New York Stock Exchange.
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Airbus
finally wins $2.7bn superjumbo order from Singapore Airlines
After a $2.7 billion (£1.4 billion) order for the
A380 superjumbo from Singapore Airlines Airbus has won
a significant victory in its annual end-of-year orders
battle with Boeing, its American rival. Singapore Airlines
has ordered nine of the double-decker aircraft of the
superjumbo this year and is taking options on a further
six A380s.
This
has been a bad year for A380's with production delays
pushing delivery two years later than Airbus promised
last year. The delays will cost the company €4.8
billion (£3.2 billion) in lost earnings and led
to the resignations of two chief executives.
Earlier FedEx cancelled an order for ten A380s and both
Virgin and the International Lease Finance Corporation
have deferred their orders.
Airbus
also announced the sale of 11 A320s to Singapore's subsidiary,
Silk Air.
However,
despite the new order announcements, Airbus will not be
able to overtake Boeing. Boeing has sold more than 865
aircraft in 2006, compared to 700 sold by Airbus. Boeing's
new 787 Dreamliner that has a 50 per cent carbon- fibre
fuselage and new internal architecture, has received many
orders and will come into service in 2009. Boeing has
sold 144 of the aircraft, worth more than $23 billion
at list prices. In the past week alone, Boeing has sold
787s worth more than $1.1 billion.
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