Uttam Galva not opposed to merger with ArcelorMittal

Mid-size steel maker Uttam Galva Steels said today it is not opposed to merger with the world's largest steel producer ArcelorMittal and is open to all options aimed at taking the company to "new heights".

"We are not opposed to merger and are open to all options as and when (any such) decision is taken by the joint board," Uttam Galva Director (Commercial) Ankit Miglani told PTI over phone from Mumbai.

"No decision has been taken as yet and the joint board will decide whatever is the best for the company," he said.

Uttam Galva, a leading producer of cold rolled steel, galvanized products and colour coated coils and sheets, is looking at technological advancements and raw material security by partnering with ArcelorMittal, he said.

He, however, made it clear that "merger is not an issue at this point of time".

Shares of Uttam Galva hit upper circuit and closed at Rs 125.05 on the Bombay Stock Exchange.

ArcelorMittal, led by NRI-billionaire L N Mittal had said on Friday it had entered into a pact with Uttam Galva's promoters for acquiring a 5.6 per cent stake. It aims to acquire 35 per cent stake in the company for Rs 500 crore.

The deal will make the steel major a co-promoter in Uttam Galva. The domestic firm will have raw material security as it currently imports at least half of its required inputs.