SOURCE: Arcelor

October 27, 2005 06:35 ET

Arcelor acquires controlling stake in Brazilian stainless steel producer Acesita

Luxembourg -- (MARKET WIRE) -- October 27, 2005 -- Luxembourg, October 27, 2005 - On October 26, 2005, Arcelor agreed with the Brazilian pension fund Fundação Sistel de Seguridade Social ("Sistel") to acquire the 12% of the voting capital of Acesita held by Sistel for R$45 per share. As a result, Arcelor will become the controlling shareholder of Acesita, holding 76% of the common (voting) shares of Acesita and 40 percent of the total capital of that company.

The move follows the agreement, on October 6, 2005, with Previ and Petros, two other Brazilian pension funds to acquire common shares representing 25% of the Brazilian stainless steel producer's voting capital and 8% of its total capital for R$ 45 per share.

In accordance with Brazilian law, Arcelor will launch a "tag along" tender offer for the acquisition of the remaining common shares issued by Acesita for 80% of the average price paid to Previ, Petros and Sistel.

Acesita is one of the most competitive and profitable stainless steel producers in the world. The move is a reflection of Arcelor's longstanding commitment to Brazil, a high quality and low cost production base for steel products with attractive domestic and export markets.

Arcelor has been constantly strengthening its positions in Brazil and Argentina since its inception in 2002, becoming Latin America's leading steel producer. The company is one of the largest global producers of flat stainless steel products with major operations in Europe and in Brazil and a global market presence.

The closing of the Acquisition is subject to the approval of the Brazilian Secretaria de Previdência Complementar (SPC) and from certain non-Brazilian anti-trust authorities.

Arcelor is a leading player of the global steel industry. With a turnover of 30 billion euros in 2004, the company holds leading positions in its main markets: automotive, construction, household appliances and packaging as well as general industry. The company - number one steel producer in Europe and Latin America - ambitions to further expand internationally in order to capture the growth potential of developing economies and offer technologically advanced steel solutions to its customers. Arcelor employs 94,000 associates in over 60 countries. The company places its commitment to sustainable development at the heart of its strategy and ambitions to be a benchmark for economic performance, labour relations and social responsibility.

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