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Russia's Largest Steelmaker To Merge With Arcelor


http://gdb.rferl.org/D3603171-43C6-4325-9BC1-9C173D5F8928_w203.jpg --> http://gdb.rferl.org/D3603171-43C6-4325-9BC1-9C173D5F8928_mw800_mh600.jpg Aleksei Mordashov, CEO of Severstal (file photo) (epa) May 26, 2006 – Arcelor and Russia's largest steelmaker, Severstal, have agreed to merge, in a deal that will create the world's biggest steelmaker.


The deal could also block a hostile takeover bid for Arcelor by Mittal Steel, until now the only global steel producer larger than Arcelor.


Severstal's controlling shareholder Aleksei Mordashov called the deal a "breakthrough" for his firm and for Russian industry's international image.


The merger still needs the approval of Arcelor shareholders, who are due to meet next month.


(Reuters)

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