The report period ended Jan. 30 was highlighted by Mittal Steel‘s brash US$23-billion hostile bid for its chief rival, European steelmaker Arcelor. Already the world’s largest steelmaker, Mittal would grow to a 100-million-tonne-per-year capacity if its bid is successful, creating a behemoth triple the size of its next closest rival, Nippon Steel.
The enlarged Mittal would have 320,000 employees worldwide and annual sales of US$69 billion. Part of the offer would entail the sale of Canada’s Dofasco to Germany’s ThyssenKrupp. Only a few days before the Mittal bid, Dofasco had agreed to a C$5.6-billion friendly takeover offer from Arcelor, snubbing an earlier offer from ThyssenKrupp. Mittal closed the period up US$6.46, or 22%, to US$35.70 while Toronto-listed Dofasco slumped C$1.31 to C$70.31.
Minneapolis, Minn.-based fertilizer producer Mosaic made headlines with a major fire at its K-2 potash mine in Esterhazy, Sask. Some 72 miners were caught a kilometre underground in sealed refuge stations for more than a day after plastic tubing ignited and filled the vast workings with dense smoke. The emergency was handled in the most professional way, and all miners were returned to surface a little shaken, but uninjured. Despite the fire, Mosaic rose US$1.28 to US$15.64 in New York trading.
The third big story of the week is intriguing: British base metals giant Rio Tinto and Russia’s Norilsk Nickel have signed a co-operation agreement covering exploration and development in Siberia and Russia’s Far East, whereby a joint-venture company in which Norilsk will own a 51% interest will be formed. Rio Tinto rose US$2.69 to US$208.11 while Norilsk closed at US$92.40 on the pink sheets.
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