Steel-maker Arcelor wins Canadian bidding war
Luxemburg-based Arcelor, the #2 steel producer in the world, won a bidding war to buy Dofasco, Canada's largest steel company. The $4.8 billion (US) deal beat out an offer from Germany's ThyssenKrupp, #8 worldwide and #3 in Europe. The bidding war started in November.
The #1 steel producer, Mittal Steel remain the leader in the business, but Arcelor, which used to be #1, is pressing hard. Last fall it acquired Ukrainian steel firm Kryvorizhstal also for $4.8 billion. Arcelor recently bought a 20% share in Turkish steel firm Erdemir, a #$1 billion transaction. Mittal tried to buy Erdemir but failed.
In addition to steel operations, Dofasco owns some iron ore mining operations in Labrador. The company has steel operations in Canada, the US, and Mexico, including several joint ventures (one with Arcelor) The moves will give Arcelor more of a presence in the North American market, an area in which Mittal is very strong.
Already there are rumors that Canada's Stelco, a rival steel mill, may be the next to be snapped up. Stelco handles a similar volume to that of Dofasco, but is just now emerging from bankruptcy. Companies like ThyssenKrupp and Russia's Severstal are mentioned as possible buyers.
5:49:18 PM 
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