LONDON, Oct. 26 (UPI) -- London's Mittal family plans to spend $4.5 billion to buy U.S.-based International Steel Group, the Wall Street Journal reported Tuesday.
The acquisition would give the Mittals steelmaking assets on four continents and create the world's largest steel producer, an entity comprising the Mittal's LNM Holdings and Ispat International with ISG of Richfield, Ohio.
To be known as Mittal Steel, the new company will be able to produce about 70 million tons of steel annually in 14 countries with 165,000 workers. It also will carry a relatively high debt of $3.2 billion.
The three-way merger has initial approval from the United Steelworkers of America and Independent Steelworkers Union, likely removing one barrier that often unravels mergers in the industry.
The world's steel industry is largely fragmented with the top 10 steelmakers supplying less than 30 percent of global output.
