The creation of Arcelor Brasil was officially announced by the Arcelor Group on July 29, 2005 as the result of the integration process begun in 2004. The Companhia Siderúrgica Belgo-Mineira-the holding for Belgo companies-was chosen as the vehicle for concentrating the shares of the Arcelor Group in Brazil.
On September 28, the special stockholders' meeting of Belgo preferred shareholders approved the conversion of these preferred shares into common shares. On the same date, the special stockholders' meeting of Belgo common shareholders also approved the conversion. Thus, Belgo's capital was converted into purely common shares (with voting rights). This meeting also approved an increase in the capital stock of Belgo, which is now the majority shareholder of CST via the incorporation of the companies Arcelor Aços do Brasil Ltda. (AAB) and APSL ONPN Participações S.A. (APSL), holders of CST shares.
The special stockholders' meeting of CST shareholders, held the following day, approved the incorporation of its shares by Belgo, with a trade at a ratio of 9.32 shares to 1, with right to withdrawal. On the same date, the Belgo special stockholders' meeting approved the incorporation of CST shares with right to withdrawal and, as a consequence, a new increase in company capital stock.
December 21st marked the official incorporation date of Arcelor Brasil, with Belgo shareholders approving in a special stockholders' meeting the change in the name of the holding and the changes in its articles of incorporation. Arcelor Brasil became the sole and full controlling company of the companies Belgo Siderurgia, CST, and Vega do Sul. The next day, Arcelor Brasil officially adhered to Level 1 Corporate Governance as defined by the Sao Paulo Stock Exchange (Bovespa) and, on December 23, Arcelor Brasil stock began to be traded with the code ARCE3.
