ARCELOR (turnover of € 32.6 bn in 2005 with workforce of 96,000 in more than 60 countries and producing 46.6 million tonnes of steel products) has finally given in to MITTAL STEEL (turnover of $ 28.1 bn in 2005 with workforce of 225,000 in 14 pays and producing 49.2 million tonnes of steel products) after five months of opposition. The governing boards from the two groups agreed on Sunday to a merger, which will give birth to a steel giant. MITTAL STEEL raised its offer in order to convince ARCELOR: it proposed to pay € 40.4 per share, 30% to be paid in cash and 70% in shares: € 25.4 bn in total. This constitutes an improvement of 34% compared to the initial offer. The Mittal family has also agreed to remain a minority in the new group and preserve Dofasco, Arcelor's Canadian subsidiary. The partners will, however, have to sell some of their assets in order to get the competition authorities to agree to the deal.