BRUSSELS Dec 1 ArcelorMittal's
acquisition of a U.S. plant jointly with Nippon Steel & Sumitomo
Metal Corp will not affect the world No. 1 steelmaker's
debt targets, ArcelorMittal's chief executive said on Sunday.
ArcelorMittal unveiled the $1.55 billion takeover of
ThyssenKrupp's U.S. steel finishing plant in Calvert,
Alabama, on Friday, saying it would finance the deal via equity
and debt at the joint venture level.
ArcelorMittal Chief Executive Lakshmi Mittal told reporters
on a conference call the deal would have a minimal impact on
this year's debt and no effect on its medium term debt target.
The company estimates net debt of $17 billion by the end of
2013, falling to $15 billion in the medium term.
Chief Financial Officer Aditya Mittal said ArcelorMittal and
Nippon would split the equity cost of the deal.
"The ratio of debt to equity is 2 to 1 which implies $1
billion of debt on the joint venture. As it is a $1.55 billion
deal, it's $258 million of equity financing for ArcelorMittal,"
He said the equity financing and the debt of the joint
venture would not be consolidated in ArcelorMittal's balance
Lakshmi Mittal said he did not see any U.S. antitrust
"We do not anticipate major problems from the antitrust
authorities, the Department of Justice, the Department of
Commerce," he said.
He also repeated his forecast for global steel consumption
growth of 3-3.5 percent this year, saying the U.S. steel market
had bounced back to its pre-crisis level while the European
market continued to be weak.