European Union clears Arcelor takeover of Uttam

ArcelorMittal and the Miglani family of India won the European Union regulatory approval on Tuesday for their joint takeover of steelmaker Uttam Galva Steels Ltd.

ArcelorMittal Netherlands BV, a unit of Luxembourg-based steel company ArcelorMittal, had announced an offer for a 29.4% stake in the Indian company in early September, which would increase its parent's stake in Uttam to 35%.

As part of the deal, the Miglani family, which controls Uttam, will sell part of its controlling stake to ArcelorMittal.

The steel company will then make a public offer to acquire additional shares.

"The proposed concentration would not give rise to any competition concerns given Uttam Galva Steels' limited export of small amounts of steel to the European economic area," the commission, the EU's competition watchdog, said in a statement.

Top global steelmakers are keen to expand into India, which together with China, is seen as a strong growth area fuelled by infrastructure building and recovering car sales.