In the midst of the Mittal takeover bid, I am sure that Arcelor would not be pleased to see that the subject of their own takeover bid, the Canadian Steel Producer Dofasco has reported a 71% drop in profits.
In view of falling steel prices this is hardly a shock, I suspect this is the only the first of a number of disappointing results.
In an ironic “twist” part of Mittal’s proposal for the acquisition of Arcelor included the sale of Dofasco shares to the rival bidder Thyssen-Krupp.
Unable to stay out of the news Mittal have announced the closure of the former Weirton galvanizing line in West Virginia, which is to focus on tinplate, rolling steel slabs from other plants. Mittal had previously announced at the end of November last year that steelmaking was to cease at the plant due to high production costs.
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