The deal, announced May 26, will create the world's largest steel producer if it goes ahead, though Mittal Steel, the world no.1, has criticized the idea as it seeks itself to gain control of Arcelor.
"I hope that the [Severstal-Arcelor] deal will be closed," Viktor Khristenko said, but refused to make any predictions.
"It is hard to say," the minister said. "Above all, I would not like to see ... Russophobic behavior toward the strong Russian economy, which is capable of entering foreign markets."
Under the current proposal, Severstal boss and principal shareholder Alexei Mordashov will receive 210 million new Arcelor shares - down from the previous 295 million - which represents approximately 25% of the merged company, against the previous 32%. He will be free to vote with his shares in line with normal shareholder practices and the standstill and lockup provisions will be eliminated.
The original deal would have seen Mordashov swap his stake in Severstal, Severstal-resurs, and Italy's Lucchini, plus 1.25 bln euros (about $1.62 bln) in cash, for an additional issue of 295 million Arcelor shares, at a rate of 44 euros per share ($55.9). The cash contribution from Mordashov of 1.25 billion euros will no longer be included in the deal, but in all other respects the merger agreement will remain unchanged.
