KIEV, May 30 (RIA Novosti) - Russia's federal anti-monopoly service will approve a proposed merger between Severstal (RTS: CHMF), Russia's largest steelmaker, and world No. 2 Arcelor, the head of the service said Tuesday.
"The decision will be positive, there is no doubt about it," Igor Artemyev told journalists in the Ukrainian capital.
Announcing the merger last Friday, the companies said in a joint press-release that the new steel giant "will be the Number 1 steel company in the world with 46 billion euros [$60 bln] in sales ... and 70 million tons of production" based on last year's results.
Under the deal, Severstal's principal shareholder, Alexei Mordashov, will swap his stake in Severstal, Severstal-resurs, and Italy's Lucchini, plus 1.25 bln euros (about $1.62 bln) in cash, for an additional issue of 295 million Arcelor shares, at a rate of 44 euros per share ($56).
As a result, Mordashov will have a 32% stake in the new company, with the other 68% being held by Arcelor's current shareholders.
