Mumbai: Luxembourg-based steel maker Arcelor Mittal SA is merging one of its auto steel units with laser welder Noble International Ltd of the US in return for a 40-per cent stake in business and a $300 million payment.

Under the deal, Arcelor''s laser-welded tailored blank business TBA, the largest in Europe, will be merged with Noble, North America''s largest producer of laser-welded steel products.

The deal, when complete, would make Arcelor Mittal - the steel giant currently being formed by Arcelor SA and Mittal Steel Co. NV - Noble''s largest stockholder and strengthen Arcelor Mittal''s position as supplier of auto grade steel.

The combined Arcelor-Noble would have a revenue of $1.1 billion (€870 billion) and earnings before interest, taxes, depreciation and amortisation, or EBITDA, of $122 million (€96 million).

The Arcelor unit employs 670 people at nine plants in Europe, one in the US and has a 25-per cent stake in a joint venture in China. The company expects revenues of around $500 million (€400 million) this year.

Noble, based in Warren, Michigan, has more than 2,000 workers at 12 plants in the US, Canada, Mexico and Australia. It expects 2006 revenue to hit $600 million (€474 million). Earlier this month, the company had acquired Pullman Industries Inc., which makes steel tubular parts for carmakers.

According to Arcelor Mittal, the deal should close in March 2007 after it wins approval from Noble''s stockholders and antitrust regulators. Mittal has significant US operations through its earlier acquisition of International Steel Group.