 Arcelor recently announced plans to buy Severstal |
The European Commission has given the provisional go-ahead for Mittal Steel to buy French rival Arcelor in a hostile acquisition. The Commission said the proposed deal would not cause competition concerns in European Economic Area (EEA) markets.
Mittal, the world's biggest steelmaker, has launched a 23.44bn euros ($29.98bn; �16bn), takeover bid of Arcelor.
The news comes after Arcelor revealed plans to buy Russian firm Severstal in an attempt to thwart Mittal's advances.
The Commission said the only market where concerns might be raised was for makers of heavy beams - a type of steel product.
Approval is conditional on Mittal selling two of Arcelor's steel mills in Germany and Italy and its own mill in Poland - demands that Mittal Steel has agreed to.
The mills represent about 10% of heavy steel production capacity in the EEA, the Commission said.
Investors are unaffected by the latest decision.
If the proposed merger between Arcelor and Severstal goes ahead it would create the world's biggest steelmaker with a turnover of 46bn euros under the Arcelor name.
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