Arcelor Mittal - a Take over Story
Group 12
A rcelor-Mittal : A takeover story
Alina
MUSTAFINA
Mihir
PATWARDHAN
Alexis
KUMUCHIAN
Alexis
POUGNANT
8 December 2010
Group 12
1. Company Background
Mittal Steel Company was one of the world's largest steel producers by volume, and also one of the largest in turnover. CEO Lakshmi Mittal’s family owned 88% of the company. Mittal
Steel was based in Rotterdam but, managed from London. It was formed when Ispat
International N.V. acquired LNM Holdings N.V. (both were already controlled by Lakshmi Mittal) and merged with International Steel Group Inc. in 2004. On 25 June 2006, Mittal Steel merged with
Arcelor. The merger has been successfully approved by shareholders and directors of Arcelor making Mittal the largest steel maker in the world.
Mittal Steel Company was founded by an Indian steel tycoon, Lakshmi Nivas Mittal.
L.N. Mittal played an immense role in Mittal Steel Company’s strategy. L.N. Mittal’s quote goes as follows: “Always think outside the box and increase the opportunities that appear wherever they might be”. He did, in fact, utilize all opportunities presented in the steel market and in less that a decade, he has expanded the company from a wire rod manufacturer in Indonesia to the largest steel producer in the world. His success stemmed from his strategy of buying up loss making steel mills and quickly turning them around.
2. International Strategy
The economic boom in China and India has caused a massive increase in the demand for steel in recent years. Between 2000 and 2005, world steel demand increased by 6%. Since 2000, several other Indian and Chinese steel firms have risen to prominence such as Tata Steel (which bought Corus Group in 2007), Shanghai Baosteel Group Corporation and Shagang Group. These groups are direct competitors and potential threat to Mittal. In order to remain the first steel producer on the international market, Mittal has been multiplying mergers and
A rcelor-Mittal : A takeover story
Alina
MUSTAFINA
Mihir
PATWARDHAN
Alexis
KUMUCHIAN
Alexis
POUGNANT
8 December 2010
Group 12
1. Company Background
Mittal Steel Company was one of the world's largest steel producers by volume, and also one of the largest in turnover. CEO Lakshmi Mittal’s family owned 88% of the company. Mittal
Steel was based in Rotterdam but, managed from London. It was formed when Ispat
International N.V. acquired LNM Holdings N.V. (both were already controlled by Lakshmi Mittal) and merged with International Steel Group Inc. in 2004. On 25 June 2006, Mittal Steel merged with
Arcelor. The merger has been successfully approved by shareholders and directors of Arcelor making Mittal the largest steel maker in the world.
Mittal Steel Company was founded by an Indian steel tycoon, Lakshmi Nivas Mittal.
L.N. Mittal played an immense role in Mittal Steel Company’s strategy. L.N. Mittal’s quote goes as follows: “Always think outside the box and increase the opportunities that appear wherever they might be”. He did, in fact, utilize all opportunities presented in the steel market and in less that a decade, he has expanded the company from a wire rod manufacturer in Indonesia to the largest steel producer in the world. His success stemmed from his strategy of buying up loss making steel mills and quickly turning them around.
2. International Strategy
The economic boom in China and India has caused a massive increase in the demand for steel in recent years. Between 2000 and 2005, world steel demand increased by 6%. Since 2000, several other Indian and Chinese steel firms have risen to prominence such as Tata Steel (which bought Corus Group in 2007), Shanghai Baosteel Group Corporation and Shagang Group. These groups are direct competitors and potential threat to Mittal. In order to remain the first steel producer on the international market, Mittal has been multiplying mergers and
References: [1] Schweiger, D.M., Csiszar, N.K. & Napier, N.K. (1993). Implementing international mergers and acquisitions [2] Wikipedia, Mittal Steel Company. Retrieved December 5th, 2010 from http://en.wikipedia.org/ wiki/Mittal_Steel_Company [3] Piramal, Gita & Ghoshal, Sumantra (2005). The extraordinary story of Mittal Steel. Retrieved December 5th, 2010 from http://www.rediff.com/money/2005/mar/17mittal.htm [4] Gupta, A. K. The extraordinary story of Mittal Steel (Powerpoint). Retrieved December 5th, 2010 from http://www.scribd.com/doc/20317804/The-Extraordinary-Story-of-Mittal-Steel Volume XVI, 2009 (Number 2) Arcelor-Mittal : A Takeover Story