NRI business tycoon Lakshmi N Mittal-owned Ispat International on Monday emerged as the world's largest steelmaker as it announced its merger with The Netherlands-based LNM Holdings and US International Steel Group to form Mittal Steel Corporation.

Ispat said it has agreed to acquire LNM Holdings for $13.3 billion in shares and the International Steel Group for $4.5 billion in cash and shares.

Lakshmi N Mittal will be the chairman and chief executive officer of Mittal Steel, it was officially announced.

Simultaneously, Ispat International and International Steel Group Inc announced that their Boards of Directors have unanimously approved a definitive agreement under which the two entities would merge.

"The combined Mittal Steel will be the largest and most global steel company in the world and will be listed on the New York Stock Exchange and Euronext Amsterdam," the official announcement said.

LNM Holdings is one of the world's largest and most profitable steel companies and also has substantial mining assets. Its revenues were $9.9 billion and operating income was $3.2 billion in the first nine months of 2004.

The company has annual total raw steel production capacity of over 32 million tonnes and owns significant mining assets, annually producing about 18 million metric tonnes of iron ore, 13 million metric tonnes of coke and 12 million metric tonnes of coal.

Above: In April 2004, Lakshmi N Mittal bought this central London house for a stunning price of £70 million
Inset: Lakshmi N Mittal

Photograph: Getty Images