World's biggest steel maker Arcelor-Mittal's plans to sell Dofasco to German steel giant ThyssenKrupp has hit a roadblock, with the Dutch foundation that controls the its Canadian unit deciding against its dissolution.
"Arcelor-Mittal has been informed that the directors of the Strategic Steel Stichting, the Dutch foundation that holds the shares of Dofasco Inc, decided on November 10 not to dissolve the foundation, which would have permitted the sale of Dofasco," Arcelor-Mittal said in a statement.
Arcelor had acquired Dofasco in January this year from ThyssenKrupp, but Mittal then struck a deal under which the German steel giant would have obtained Dofasco once Mittal had taken over Arcelor.
"The boards of both Mittal Steel Company NV and Arcelor SA had previously requested the directors of the foundation to dissolve the foundation in order to allow the sale of Dofasco," it said.
"Arcelor-Mittal is reviewing the situation and will be in contact with the US Department of Justice," the statement added.
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