By Prasun Sonwalkar

London, June 26 (IANS) The soon-to-be-formed Arcelor-Mittal company will focus on emerging markets such as India and China, according to Lakshmi Mittal, who will be the new entity's president.

Addressing a joint press conference in Luxembourg Monday after the decision by Arcelor board to recommend the Mittal Steel offer to its shareholders on June 30, Mittal said he was confident the shareholders would vote in favour of the merger.

Mittal Steel and Arcelor together have a large presence in almost every part of the globe, and Mittal said it would now enter emerging markets such as India.

Mittal and Arcelor chairman Joseph Kinsch jointly addressed the press conference.

"Now it is time that both companies sit together and decide on a larger Chinese footprint," Mittal said, adding: "The new entity will focus on emerging markets like India and China."

A delighted Mittal said that combined group would not only be a leader in steel but will also figure among the world's top companies. It would be ranked at number 40 in the Fortune 500 list.

Kinsch described the deal as a "marriage of reason", and added he hoped that it could turn into a marriage of love. To this, Indian-born Mittal responded: "We have been trying to persuade the bride for the last five months that we love her and she should accept our marriage proposal."

"Initially, the chairman's position will be held by Kinsch and the president's position will be held by Mittal. Upon the retirement of Kinsch, Mittal will assume the role of chairman and the successor to the president will be proposed by Kinsch," the two companies said in a statement.

Guy Dolle, who had chided London-based Mittal when he first made the offer in January, has offered to step down as the chief executive officer of the new company. A new CEO is likely to be announced June 30, after Arcelor shareholders vote in favour of the merger.

Mittal suggested that Kinsch should propose a candidate for the CEO's position. Aditya Mittal, son of Lakshmi Mittal and chief finance officer of Mittal Steel, is likely to take over as the chief finance officer of the new company.

Aditya said the new company will have exceptional raw material availability. "The creation of the new entity would reduce volatility in the market... it would be a supplier of a key range of products," he said and added that the new company would be able to fund future investments comfortably.