updated 7/26/2006 8:53:04 AM ET 2006-07-26T12:53:04

Mittal Steel Co. NV said Wednesday that shareholders representing 92 percent of Arcelor had agreed to Mittal’s takeover offer in a deal that will form a steel titan with control of close to 10 percent of global production.

The company needed to gain control of at least 50 percent of Arcelor equity for its bid to succeed.

Last month, Arcelor yielded to Mittal’s third offer — worth $31.9 billion (25.4 billion euros) — ending a bitter five-month battle, and told shareholders to accept Mittal’s cash and stock offer.

Mittal Chairman and Chief Executive Lakshmi Mittal said the high percentage of shares accepting the bid was a “resounding endorsement” of the deal.

“We are very excited about our future as one company and believe this strong vote of confidence from shareholders paves the way for a speedy integration process, allowing us to realize the full benefits of working together as the undisputed world steel leader,” he said.

Arcelor shareholders tendered 594.5 million shares and 19.9 million convertible bonds that will be swapped for 665.6 million new Mittal shares and $9.82 billion (7.77 billion euros) in cash on Aug. 1.

Mittal said this will give it a market capitalization of $44.3 billion after these new shares are issued, based on its July 24 closing price.

The free float will be around $24.3 billion, or 54.8 percent of the total market capitalization, it said.

Mittal will also try to buy out minority shareholders, with the same cash-and-stock offer running from July 27 to Aug. 17 and an all-cash option to be announced before Aug. 18 that must close by Nov. 17.

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