Mittal, Noble in Welding Venture

Arcelor Mittal gets a 40% stake in the Michigan car welder.
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Arcelor Mittal (MT) - Get Report agreed to sell its laser-welded tailored blanks business to Noble International (NOBL) - Get Report for $300 million in cash and stock.

The deal will give Rotterdam-based Arcelor Mittal a 40% stake in Noble, a Warren, Mich., welder.

The Arcelor Mittal blanks business includes nine plants in Europe, one in the U.S. and a 25% joint venture in China. It employs about 670 people and is expected to post 2006 revenue of $500 million.

Closing of the transaction is expected in March 2007, following satisfactory completion of due diligence by both parties, Noble's financing, and receipt of all required authorizations, including approval by Noble's stockholders and antitrust clearance.

Michel Wurth, member of the Arcelor Mittal group management board, said: "This move further strengthens our position with the global automotive industry. Noble will leverage TBA's strong position in the European market and offer additional benefits for our global automotive customers. We look forward to working with them as privileged partner."