"Russian business is coming out into the world arena," Severstal's chief executive Alexei Mordashov told reporters.
MOSCOW: The head of the Russian steel group Severstal on Saturday hailed a prospective merger of his company and European steelmaker Arcelor, saying it signalled Russia's entry into the global business arena.
"Russian business is coming out into the world arena," Severstal's chief executive Alexei Mordashov told reporters.
Arcelor announced on Friday that it planned to buy Severstal in a USD 15.3 billion transaction. The merger aims to head off an earlier USD 32.8 billion offer from the world's number one steelmaker, Mittal Steel, to take over Arcelor.
The Arcelor-Severstal merger, which would create the world's biggest steel group, shows that Russians are capable of taking part in the creation of global companies. It is a precedent, Mordashov said.
When the merger is completed, Mordashov is due to become one of the main shareholders in Arcelor, holding 32 per cent of the capital. He has said he would like to increase his stake to 45 per cent.
Severstal will remain registered in Russia as a subsidiary of Arcelor under the merger agreed, he said.
The merger has yet to be approved by competition regulators and by Arcelor shareholders meeting on June 28. It is expected to be finalised by the end of July. Analysts said the Severstal merger would deal a damaging but non-fatal blow to Mittal Steel's bid for Arcelor.
Lakshmi Mittal, head of the Mittal Steel, which has Indian origins but is based in The Netherlands, said his company, was determined to see its takeover bid through to the end despite Arcelor's merger announcement.
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