Arcelor and Mittal Thursday unveiled further details surrounding the legal merger of the two companies to create Arcelor Mittal, the world's largest steel company in line with a contract signed between both parties on 1 August 2006.

Subject to the approval of Mittal shareholders, the Indian firm will be merged into an ad hoc subsidiary named Arcelor Mittal, with each Mittal share exchanged for one Arcelor Mittal share.

Additionally, a merger agreement between Mittal and Arcelor Mittal was signed on May 2,, with documents relating to the merger due to be submitted to the relevant securities regulatory bodies shortly, said a statement.

Mittal and Arcelor's existing corporate governance structure will be applied to Arcelor Mittal, it added.

The second phase of the merger announced Thursday will see Arcelor Mittal merged into Arcelor, which will in turn be renamed Arcelor Mittal.

The exchange ratio between Arcelor Mittal and Arcelor shares has yet to be determined, said the statement, and will be announced once approved by the boards of the two companies.

Both companies are working to implement both mergers as soon as possible, concluded the statement.