Lakshmi Mittal, chief executive and major shareholder of the world’s largest steelmaker, said yesterday that the prospect of a £166 billion merger between Rio Tinto and BHP Billiton would not affect his company.

Mr Mittal said that any merger was an endorsement for ArcelorMittal’s strategy of vertical integration. “About 45 per cent of our iron ore supplies comes from our own mines; by 2012 we want that figure to be about 75 per cent. If it happens, this merger just reinforces that that strategy is the correct one,” Mr Mittal told The Times.

“We haven’t seen a formal offer yet and we are keeping an eye on this, but so far no one from BHP Billiton has had any communication with us.”

A merger between the rival mining groups would give the new company about 27 per cent of the world market for iron ore and has excited concern in the steel industry, particularly in China, a leading consumer of steel and other natural resources.

ArcelorMittal was formed through a mega-merger of the world’s largest and second-largest steel companies last year, although the legal merger of the two entities was completed only yesterday. It is worth £50.5 billion and is three times bigger than Nippon Steel, its nearest rival.

Mr Mittal made his comments as ArcelorMittal posted a forecast-beating 12 per cent rise in its third-quarter core profit to $4.9 billion.

The chief executive attributed the increase, which came despite shipment of lower volumes of steel, to the cost savings that have arisen from the merger. Earnings for the nine months to September 30 were 30 per cent higher than they were in 2006, at $14.6 billion. The increase to earnings has enabled the company to raise its dividend by 20 cents increasing quarterly payments to 37.5 cents a share.

ArcelorMittal pledged at the time of the merger to return 30 per cent of net income to shareholders every year, through an annual dividend and share buybacks.

ArcelorMittal said that it had bought Galvex, an Estonian steel galvanising operator with annual sales of €100 million (£71.2 million).

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