Mumbai: Global steel giant ArcelorMittal will pay $542 million (1.708 billion pesos) to acquire an additional 34.7 per cent stake in Acindar Industria Argentina de Aceros SA, Argentina''s second-biggest steelmaker.

ArcelorMittal said it would offer 5.75 pesos per Acindar share, a 19.5 per cent premium to Acindar''s closing stock price on October 1, to take control of the company.

The offer, made by ArcelorMittal subsidiary ArcelorMittal Spain, should commence within four months, subject to regulatory approval.

The offer would be conditional on the majority of Acindar shares being tendered, and ArcelorMittal eventually holding at least 90 per cent of the Argentine company''s outstanding shares.

ArcelorMittal currently owns a 65.3 per cent stake in Acindar.

"The offer is designed to help ArcelorMittal strengthen its position in Argentina and reinforce its commitment to enhancing its business in the country," the company said in a statement.

Acindar is in the process of completing a $150 million capital programme to raise capacity to 1.7 million tonnes.

JP Morgan is acting as exclusive arranger and dealer-manager for ArcelorMittal while Bruchou, Fernandez Madero & Lombardi is the legal adviser.

also see : Other reports on ArcelorMittal