Arcelor Mittal will be the world's biggest steel company

It said that it was still verifying the number of Arcelor shares it had been able to buy at its offer price, and would give a final result on 26 July.

Arcelor's board accepted Mittal's improved bid of 25.8bn euros (�17.7bn; $32.3bn) after a five month battle.

The deal creates the largest steel manufacturer in the world.

Arcelor had been considering a rival merger proposal from Russia's Severstal, but finally caved in as a result of shareholder pressure and an improved offer from Mittal.

Industry giant

Under the terms of the revised offer Arcelor shareholders will get 13 Mittal Steel shares and 150.60 euros for every 12 Arcelor shares.

ARCELOR-MITTAL Will control 10% of world steel market Total sales of 55bn euros More than 320,000 employees

If the takeover offer is accepted by 100% of current Arcelor shareholders, they will end up owning 50.5% of the combined group, with the Mittal family owning 43.6% of the capital and voting rights.

The combined company will be based in Luxembourg and called Arcelor Mittal.

The merger will create a vast enterprise controlling 10% of the global steel market, with annual production more than three times the output of its nearest rival, Japan's Nippon Steel.

Nippon Steel currently has said it will continue its technology-sharing deal with Arcelor following the merger, and will also carry on with an automotive steel joint-venture with Mittal Steel in the US.