(Bloomberg) — Aperam SA, the stainless steel producer spun off from ArcelorMittal SA, is considering a merger with Spanish rival Acerinox SA, according to people familiar with the matter.
The companies are working with advisers as they explore a potential deal, said the people, who asked not to be identified because the discussions are private. Any combination would require support from the Mittal family, which controls around 40% of Aperam, as well as the Spanish March family, which is Acerinox’s largest shareholder with 18% through an investment vehicle, they said.
Acerinox shares are up around 7% this year, including amid recent takeover speculation, valuing the Madrid-based company at 3.3 billion euros ($3.5 billion) while Aperam has a value of 3.1 billion euros.
No final decision has been made and the talks could still break down, the people said. The companies could not immediately be reached for comment.
A deal between Aperam, which split from ArcelorMittal in 2011, and Acerinox is likely to face regulatory scrutiny as the two companies are among the largest stainless steel makers in Europe. Acerinox is a market leader in the United States and several other regions of the world, including South Africa and Asia.
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